CRA Collection Complaints
The CRA collections department are often difficult to work with. Here are some of the most common CRA collection complaints and how to resolve tax problems that could lead to significant issues. If you're having trouble dealing with CRA collections, contact Farber Tax Solutions to fight for you against the CRA.
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Common CRA Collection Complaints and How to Deal
The Canada Revenue Agency (CRA) can be difficult to deal with even in the best of times. It’s a large government agency that follows several complicated and often confusing processes. Communicating with the agency can even become even more difficult when it is trying to collect. This difficulty often leads to various CRA collection complaints from people who owe taxes or have other tax issues.
The CRA has very strong and broad collection powers. Not only can it use these powers to collect on the debt owed to it, but it can also use the threat of these powers as leverage in negotiations. This makes negotiating and communicating with the CRA very tough.
Some Common CRA Collection Complaints
One major issue that many people experience with the CRA is that it is difficult to get in touch with the agency and to get a prompt response. This problem can be especially difficult in situations where the CRA provides incorrect information. For instance, there have been situations where taxpayers have received collection letters stating that they owe an incorrect amount. However, when these individuals attempt to contact the CRA to discuss the error, it often proves to be difficult to get in touch with someone and even harder to get the situation resolved. The CRA receives very high call volumes and, unless you know how to get through the CRA’s complex processes, it could take a long time before anyone will speak with you. Once you do, getting your problem resolved is often a lengthy and stressful process.
If you are having trouble paying your tax debt, the CRA can prove tough to negotiate with, which often leads to CRA collection complaints. While other creditors may be willing to accept a reduced amount rather than risk having someone default on their debt, the CRA will not. This is because the agency knows it has very strong powers that it can use to collect a debt. These collection powers also make it much more difficult to negotiate a payment plan with the agency.
The CRA’s Strong Collection Powers
As mentioned, the CRA has very strong powers that other creditors do not. These powers include:
- Wage garnishment
- If you owe tax debt, the CRA is legally able to garnish up to 50% of your employment income, if you earn a salary or hourly wage, or up to 100% of your other income (such as freelance income). Obviously, wage garnishments make it incredibly difficult to afford your expenses and live your daily life.
- Freezing bank accounts
- The CRA can freeze your bank account, preventing you from accessing the funds. The CRA is even able to require that the bank transfer money directly from your account to the agency if you owe a debt that you have not paid for quite some time.
- Seizing assets
- If you owe tax debt, the CRA can legally seize your assets (such as your car or even your home) and then sell these assets to pay off your debt. If this happens, you’ll be responsible for paying the costs associated with the process.
- Taking money from other government programs
- The CRA can redirect funds that are owed to you by a different government agency, such as GST/HST credits, and then use this money to pay off your tax debt.
As you can see, the Canada Revenue Agency has many tools at its disposal that it can use to collect a debt. These strong powers lead to many potential issues, and the difficulty of negotiating with the agency often leads to CRA collection complaints. Since the CRA knows that it can take action to collect on a debt that is owed to it, it is often very tough when it comes to negotiation, which can be frustrating.
Working with an experienced professional, such as the team at Farber Tax Solutions can help. Our team of ex-CRA professionals, working in affiliation with tax lawyers from Farber Tax Law know how to get through complex CRA processes and effectively negotiate with the agency to resolve tax problems. Contact us today for more information on how we can help.
Farber Tax Solutions Helps You at Every Step of the Way including:
- 1| Organizing: We analyze all documents and communication, to fight the CRA on your behalf
- 2| Audits: We assist you with audits and ensure proper conduct by tax authorities
- 3| Appeals: We can prepare a Notice of Objection, clarifying your standing with the CRA
- 4| Litigation: We represent you at all levels of court