Requirement to Pay
Served with a CRA Requirement to Pay? Farber Tax Solutions have ex-CRAs, tax lawyers and tax accountants on staff to help you handle the CRA.
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CRA Requirement to Pay
What is a Requirement to Pay?
A Requirement to Pay is a legal notice issued to third parties when a taxpayer owes tax arrears to the CRA. Compliance with the Requirement to Pay is mandatory on the third-party recipient. The CRA does not need a court order to issue a Requirement to Pay. Third parties such as your bank, your employer, or business clients can be legally compelled to redirect funds to the CRA. This can include wages, receivables, commissions, investment and sale proceeds, and amounts in your bank account.
How Long Does a Requirement to Pay Last?
Requirements to Pay typically stay in force until the taxpayer’s debt is paid in full, and while in effect, many taxpayers experience serious cash flow problems due to the inability to access their bank account(s) or keep on top of monthly expenses. It can be an arduous process for taxpayers to negotiate the removal of a Requirement to Pay while their tax liabilities remain, as the CRA will likely be wary of promises from taxpayers who do not have a history of compliance. Our team deals frequently with Requirements to Pay and have been able to get bank accounts unfrozen or garnishments reduced for our clients.
How to Deal with a Requirement to Pay
The quickest way to have garnishments reduced is by either paying off the debt or coming to a payment arrangement with the CRA. Paying off the debt in full is challenging, and the CRA typically does not reach long-term payment arrangements without significant persuasion.
Our ex-CRA and legal staff are experts in securing long-term payment arrangements with the CRA resulting in the removal of all enforcement actions including Requirements to Pay, garnishments, liens, and frozen bank accounts. We communicate directly with the CRA Collections Division on your behalf to alleviate the pressure on our clients and we have had success having garnishments reduced or lifted even in most extreme cases.
How We Help
With decades of combined experience between our ex-CRA staff and a history of successful negotiation, Farber Tax Solutions brings additional credibility and the ability to anticipate CRA demands. It becomes our priority to reconcile the expectations of the CRA with our clients’ financial ability to pay and to mitigate any existing or impending legal action taken by the CRA.
Contact us today to learn more about how we can help.
Farber Tax Solutions can help you successfully deal with CRA problems. We utilize the experience of our tax experts to:
- 1| Offer a comprehensive solution that is focused on achieving the most favourable possible outcome for your tax issue;
- 2| Communicate with the CRA on your behalf and navigate the entire CRA dispute process; and
- 3| Offer a complete solution to your tax problems, including ex-CRA professionals and tax lawyers from Farber Tax Law.