Can I simply pay myself less to avoid having surplus income?
April 28th, 2015 by Questions
I am 66 and own/manage a small business. CRA has sent the business an order to pay 40% of my wage to CRA. The company pays me $500/week, about $2200/mo. CRA has also garnished 100% of both my CPP and OAS, about $900/mo. I have no assets and I have been advised that the company is not worth much if it were to be sold so no equity there. If I declare BR, I have been informed that I must pay 50% of my surplus income to the trustee for 21 months but my CRA debt goes away and I get to keep my CPP and OAS $900. OK, so can I simply pay myself less to avoid having surplus income, say $1000/mo and be discharged in 9 months? It’s my decision as the sole proprietor how much the company pays its employees. Is this true if I declare BR? Does it matter when I start the new pay schedule?