need advice

January 9th, 2011 by Questions

my bf has not paid income tax for at least 5 years or filed an income tax return. he was self employed with a business number and neither him or his employees paid any taxes. now he is employed with an employer and he is not having his employer take any deductions at all off his paycheque. he writes his boss an invoice with his hours each month. he thinks if he claims bankruptcy that will cover all of his neglected taxes he never paid. i disagree with him and i think he is going to be in big trouble when they catch up with him eventually. any advice?

Posted from: Alberta

Questions

One Response to “need advice”



, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Well a bankruptcy will clear your boyfriend from his outstanding tax debt, but it may not be a simple process. Where there is significant tax debt, or willful avoidance of paying and file taxes you are often not treated as the average consumer debtor. Depending on the level of your tax debt the bankruptcy may automatically be extended to 36 months at a minimum and the likelihood of the tax department opposing a discharge from bankruptcy in court and the court ordering repayment of a significant portion of the outstanding taxes will become a real possibility.

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