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Have a Significant Tax Debt You Cannot Pay?

Since the Canada Revenue Agency benefits from a special set of laws regarding unpaid taxes, owing them money is not the same as owing a regular creditor. When collecting, the CRA can go ahead with a variety of options, such as wage garnishing, bank account freezes, intercepting monies payable to you, tax liens, as well as seizing and selling your assets. Contrary to a regular creditor, the CRA may garnish your wages without a court order.

The Canada Revenue Agency charges compound daily interest on any overdue taxes or balance owing, starting May 1st for the preceding tax year.  Interest is charged on tax penalties from the day after your return is due. The CRA also applies a penalty for the late filing of your tax return, which is equivalent to 5% of the total balance owing in addition to 1% of the total balance that the tax return is late, up to a limit of twelve months.

Owing penalties and interest charges as a result of unintentional situations may be reversed by requesting Taxpayer Relief. Instances such as natural disasters and severe personal difficulties are applicable and may be submitted under form RC4288, Request for Taxpayer Relief.

To secure a payment plan with the Canada Revenue Agency, relevant and confidential information is best discussed with a qualified tax lawyer who will advise you how best to move forward. If you are concerned that the CRA may be about to seize your assets, please call toll-free 1-877-8-TAX-TAX Canada-wide or book your consultation with Barrett Tax Law in real-time by clicking here .

To get the best possible deal on a CRA payment plan, you may have our expert tax lawyers negotiate on your behalf, but you do have the option to negotiate on your own by calling 1-866-256-1147, which is the CRA’s Tele-arrangement service line.