How to deal with the CRA and What Are My Options When I Can’t Repay My Taxes?
When dealing with a CRA Collection Agent we always recommend taking the non-confrontational approach (after all, they are doing the job they were hired to do). Find out what they want and explain your current position to them and let them know that you would like to come to a solution of repaying the outstanding tax debt (that is if you can afford to or have the means to repay).
If you owe a lot of tax debt to CRA and have the ability to repay your taxes (including interest and penalties) you may enter into a payment arrangement with CRA. We typically see the payment arrangement being made for a period of up to 12-months.
If you find that you do not have the resources to repay CRA the outstanding tax debt and interest and penalties then you need to act quickly in order to avoid CRA aggressive collection options that they have at their disposal.
The only effective tax debt remedy that is available in Canada to deal with outstanding tax debt is either a consumer proposal or a bankruptcy. These two options can only be filed by a Licensed Insolvency Trustee, like Chande & Company Inc. No tax lawyer or tax accountant has the ability to get rid of tax debt.
Over the years, we have had very positive results in significantly reducing or completely eliminating tax debts owed to CRA. We are confident that we can help you.
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