Trust Debts Compared to Income Tax Debts
When dealing with the collections agent, remember the distinction between trust debts and regular debts – taxpayers are the CRA’s agents for trust monies, and that is very serious. The collectors will be must more aggressive with the trust debts, and when a taxpayer has two competing collectors, it is important to prioritize the collector with the trust debt over the other collector. Furthermore, when paying voluntarily, it is important to prioritize payment of trust debts over regular tax debts.
Two major differences between trust amounts and regular tax amounts with respect to collections:
- Objecting to trust assessments / reassessments does not stop the collections action. It will continue even while an item is in dispute.
- The collector will be much more aggressive with respect to the collection of trust amounts. More serious measures will be adopted earlier on in the collections process.
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