Tax Debt Solutions
Get Rid Of Tax Debts
Do You Owe Taxes That You Cannot Repay?
Many of the people that we meet, and help, will owe CRA. The taxes can be from personal income taxes, taxes arising from cashing RRSP’s, taxes as a result of an employer not deducting enough taxes, HST and employee source deductions for self-employed individuals are just some of the types of tax debts that we can help with.
People are always surprised to learn that income tax debts can be eliminated with a bankruptcy or a consumer proposal. Tax debts are treated like any other unsecured debts (such a credit cards, pay day loans, overdraft, etc.).
Now that you know that tax debts can be discharged with a bankruptcy or consumer proposal here are some important things you should also know:
- Tax debts that can be included in a bankruptcy or consumer proposal include:
- Personal income taxes
- HST / GST
- Unpaid Source deductions; and
- Small business (not incorporated) income taxes
If you have outstanding tax returns (tax returns that you have not yet filed) you will need to bring them up to date (file all unfiled tax returns). Not filing tax returns is not an option when dealing with tax debts in a consumer proposal.
If left ignored, tax debts can grow very quickly over time once interest and penalties are added
Unlike most other creditors, CRA has very strong and broad powers available to collect unpaid taxes. As a result, CRA Collections can be quite aggressive at times in using their powers.
CRA can garnish your wages, freeze bank accounts and register tax liens on your assets (such as a home, vehicle or any other asset you own). Unlike other creditors, CRA does not need to take you to court to obtain an order to garnish your wages. CRA has the power to directly notify your employer.
Interested In Finding Out More?
Book a free, no obligation consultation with us today!