How To Stop a CRA Garnishment
A CRA wage garnishment can make it nearly impossible to afford your expenses and it can cause personal and professional issues. Here is what you can do to stop a CRA garnishment.
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Putting a Stop to a CRA Garnishment
The Canada Revenue Agency (CRA) can garnish your wages without a court order. This often means that it can happen without any warning. A CRA garnishment can cause significant financial issues. After all, you won’t be able to access the money that you have earned. This makes it difficult to afford bills and monthly expenses.
Usually, a CRA garnishment occurs when a person owes tax debt and that person does not pay the debt or arrange a payment plan with the CRA. A garnishment can also be imposed if a person is behind on filing taxes and the CRA believes that money is owed to it. In these cases, the agency can issue a notational assessment, determine how much is owed, and then garnish wages until this tax debt is paid.
Thousands of Canadians have their wages garnished by the CRA each year.
How Much Can the CRA Garnish?
A CRA wage garnishment can be applied to up to 50% of your income if you are employed and have taxes deducted at the source. In the case of other income, such as subcontractor income, up to 100% can be garnished by the CRA.
Self-employed individuals can even have CRA notices sent to their clients, ordering these clients to redirect their payments to the CRA. The CRA can garnish 100% of a self-employed individual’s invoices.
As you can see, this can cause significant problems. In addition to making it incredibly difficult to pay expenses and run a business, a CRA garnishment can cause personal and professional disruption and devastation.
For example, consider a situation where your spouse was not aware of your tax problem. Once your wages are garnished, the certainly will be! This can cause significant strain on your marriage on top of the financial issues that it will create.
If you have a job where you are trusted with financial information or where you are required to be financially responsible, your employer being served with a CRA garnishment won’t just result in embarrassment, but it could cause them to question your reliability.
If you are self-employed and your clients receive notice that your invoices are being garnished by the CRA, they could lose trust in you and your reputation will be seriously harmed.
The good news is that there are ways to combat a CRA garnishment.
Getting a CRA Wage Garnishment Reduced or Removed
Experienced tax professionals, such as the specialists at our organization, can help taxpayers communicate and negotiate with the CRA, leading to CRA garnishments being reduced or entirely removed. Trusting a professional to deal with the CRA will drastically increase the likelihood of a successful resolution to your issue.
However, having the garnishment removed is just the first step of the process. The next is to resolve your tax problem. The professionals at Farber Tax Solutions can help. We have the experience and understanding of CRA rules, policies, and procedures necessary to successfully resolve your tax issue. Not only can we negotiate with the CRA on your behalf, but we understand how to successfully navigate complex CRA processes and reach a resolution. Contact our team today for more information
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