If you owe a lot of income tax, according to your tax assessment from the Canada Revenue Agency (CRA) (formerly Revenue Canada), and you have difficulty paying it, what should you do? Follow this check-list to make sure you get the best result possible. First, understand what CRA can do.
Nobody likes to pay taxes, so CRA has strong powers to make sure they collect what people owe.
What’s more, CRA will not willingly accept less than full payment. They have millions of taxpayers, and can’t afford to set a precedent that would force them to accept less from everyone else.
So you must treat tax debt seriously, and promptly. If you put it off, it’ll get bigger, and CRA may take steps that really disrupt your life.
Start by knowing what you really owe. Your solution must be based on your real situation, or it will probably collapse.
Learn the choices you have for income tax debts in Canada, and choose the least drastic solution that will work for you. In all but the simplest solutions, you will benefit from professional advice. Contact a licensed bankruptcy trustee for help; your initial consultation will be at no charge