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I Can't Pay My Taxes in Full. Now What?

August 19, 2022

By: James BellManaging Director, Farber Tax Solutions, Senior Advisor, Farber Tax Law

It’s a common problem; you’ve filed your tax returns on time but find yourself or your company owing more than you can pay at once. Will the CRA come after you or your company to enforce collection of the outstanding tax balance? The answer is yes. Oftentimes the CRA will take aggressive action to collect what you owe to them. It’s only a question of when.  It’s important to realize the gravity of the situation and understand that ignoring it in the hope that the CRA will somehow overlook you isn’t going to make it go away.

The CRA needs increased revenue more than ever, and as quickly as possible. The money spent by the federal government on income support programs to help Canadians during COVID was extremely costly, and now the CRA is aggressively pursuing taxpayers to help offset those costs through collection enforcement actions. The gloves are off and the CRA wants their money now, rather than later.

What should you do now?

Being proactive is the key. Preventing CRA enforcement actions such as a frozen bank account or an income garnishment is much easier than having it removed once it’s in place.

However, dealing with a CRA collection officer is definitely not a do-it-yourself project. Do you know what you should say, or more importantly, shouldn’t say to a CRA collector?  It’s what you don’t know that can cause more trouble.

Having a firm that is experienced in dealing with the CRA’s collection division is the key to ensuring that enforcement action is not taken against you while allowing you to affordably pay back the taxes you owe. 

Our ex-CRA Advisors have decades of combined experience and will provide you with first-hand knowledge of how the CRA works and thinks. They will immediately take over all communications with the CRA and act on your behalf to ensure your rights are protected, and work to secure the payment arrangement plan that meets your needs.

Contact us today for a free, no-obligation, consultation to discuss the solutions available to resolve your tax problem quickly and successfully.