CRA- retroactive action

When I filed a consumer proposal all my tax filings were up to date and `accepted as filed` by CRA, no money was owing, and so they were not listed as a creditor. A year after my discharge CRA audited me as I showed little income for several years and disallowed all my business expenses & reassesed me for the several years prior to my filing the consumer proposal and demanding almost 40,000.
Does my consumer proposal filing have any effect on them if I didn`t know they were going to be creditor at the time at the time of filing.
Many thanks

One Response to “CRA- retroactive action”

Barton Goth GCO Bankruptcy Trustees said...

Unfortunately you will not be protected from the debt as it was not included in the original proposal filing. If the proposal was still in place you could try to re-negotiate the deal, but as it is complete that is not going to be an option.

So that puts you at square one and you could consder paying the debt in full, negotiating with the creditor (although it is CRA so this would have to be done through a proposal) or the filing of a bankruptcy.