Can the CRA Garnish Your Wages or Seize Your Property?


Do you owe money to the Canada Revenue Agency (“CRA”)? Do you feel that the CRA is acting like a loan shark and you’re worried about losing your thumbs? If you are like a lot of taxpayers, this is how it can feel to owe the CRA money. The collection powers of the CRA dwarf any other collection company you have ever dealt with and you should be aware of what can happen to you.

The CRA can take legal action against you, which means it can do any and all of the following to you if you are indebted:

  • Garnish wages;
  • Garnish other sources of income (for example a receivable);
  • Seizing / freezing bank accounts;
  • Seize assets;
  • Sell assets;
  • Lien property;
  • Force a sale of property; and
  • Even have your credit cards cancelled.

The CRA will register your debt (known as a certificate) with the Federal Court of Canada and once registered, a certificate has the same effect as a judgement obtained against you. You may or may not be notified of the certificate. What the certificate means, is that you must pay the amount in full, and if you do not, the CRA may seize assets and/or property to be sold to offset your debt. Let us make this clear, you do NOT have to be informed of the certificate. That is why it is extremely important to seek legal assistance if you owe money to the CRA.

If you owe money to the CRA and simply do nothing, CRA will take legal action against you. If you receive a notice that you owe the CRA money, your first call should be to Barrett Tax Law. We can assist you in dealing with the CRA’s exceptional powers to take your money.

We will explain to you why you owe the CRA, we will determine if that amount is legitimate, following which we will create a custom plan for you to get back on your feet without having to declare bankruptcy.

If you cannot afford to pay the full amount of your debt, we can assist in negotiating a proper payment plan with the CRA, one that allows you to continue living your life as you see fit, not how CRA collections officers think you should be living.

Finally, we can negotiate for a stay of collections (i.e. the CRA will not take legal action), something that can be extremely important in allowing you to continue with your life without the constant reminder that you are indebted to the CRA.

Do not let the CRA have the upper hand. Lets stop them from garnishing your wage and assets. Call Barrett Tax Law and take back the power in your relationship with the CRA. You have rights. It is time to exercise them.