Garnisheeing Wages

One of the more feared powers of CRA collectors is their ability to garnishee wages.  If an individual taxpayer who is a sole proprietor owes taxes from a side-business, the CRA could garnishee their wages at their day job.  Similarly, if a taxpayer owns a corporation and pays themselves through corporate payroll, the CRA could force their own corporation to send a portion of their wages directly to the CRA. Typically these garnishees are no higher than 50% and usually they start at about 30%.

Often times taxpayers can negotiate with the collector to lift the garnishee in return for a regular monthly payment. It is always better to do the voluntary payment rather than the garnishee – even if it is for the exact same amount.  It looks better in the computer – compliance with a payment plan vs. a person who was so uncompliant that their wages had to be garnisheed on an ongoing basis.

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