Is Revenue Canada (CRA) the source of most problems ?

September 28th, 2005 by Questions

The common thread that I have seen in this blog and through Googling is that there seems to be an extraordinarily high number of people who have been forced into bankruptcy because Revenue Canada has performed \’retro-audits\’ and given \’arbitrary assessments\’ ( CRA\’s terminology – not mine )

Are there any statistics published over the last couple of years that would indicate what percentage of consumer bankruptcies were brought about by debt owing to Revenue Canada ?



One Response to “Is Revenue Canada (CRA) the source of most problems ?”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

The best I can tell you is that in 2004 taxes were a factor in 38.1% bankruptcies and the average tax debt was approximately $18,000. In proposals taxes were involved in 33.7% of the time in a proposal and the average tax debt was approximately $7,500. This information comes directly from a presentation given by the Superintendent of Bankruptcy in August. However, what percentage of the time are taxes the driving force, or whether or not these files were the result of retro-audits or arbitrary assessments is simply impossible to tell.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)