It may not be as bad as you suspect.
TaxWatch Canada offers tax debt consulting services to help deal with how present and future tax debts will affect your life. We discuss with you what can be accomplished while working with CRA and their system. Best of all, we tell you what you need to know to make the best judgment calls.
Talk to us before you talk to CRA.
When you have a present or expected tax burden that you know will be unaffordable or disruptive, DO NOT:
Ignore CRA demands or phone calls. They will shoot first.
Make tax payments unless you have a plan and eventually have CRA agree to the arrangement.
Make commitments to pay CRA that you know are unsustainable.
Be fearful or dishonest. It is not illegal to owe tax.
Transfer assets to others to avoid tax debt. You only end up potentially involving these others with CRA and the actions could be deemed fraudulent conveyances. Then you are really in the deep end.
Some of the types of CRA collection actions that we suggest you discuss with us. The sooner the better; there are ways to mitigate these actions:
Garnishments (by CRA) to wages, pensions, CPP, and/or OAS (up to 70%!).
Garnishment notices sent to your employer and/or customers.
Requests for financial disclosure if you are attempting to make payment arrangements.
Funds seized from bank accounts.
Actions by CRA against others close to you.
GST or payroll withholding debt owing to CRA will attract much greater attention and more severe action from CRA.
If you ignore CRA they may go ‘Defcon 2’ – jeopardy collection action.