Canada Revenue Agency

May 22nd, 2008 by Questions

If I were to file a Divisional One Proposal soon – would I also be able to claim any tax owing for current year Jan 2008 to the day I filed the proposal? Or is that only in a Bankruptcy? I currently owe them about 30K for 2007 and before and probably owe another 6K for 2008.

Posted from: Manitoba


One Response to “Canada Revenue Agency”

, Barton Goth - Goth & Company Inc. - Bankruptcy Trustees said:

Your taxes can be included up to the date you file bankruptcy, so if you filed May 15th 2008 they would be included up to that date. Now there is a provisional tax return of the period of January 1 2008 to the date you filed for bankruptcy that your trustee must file, but as long as you provide him the necessary tax information there really isn’t much of a problem.

The bigger trick is proposing a settlement to CRA. In most places of the country they are currerntly voting down most proposals unless they pay back 100% of the principle of the tax debt. However, I was talking to a trustee in Saskatchewan last week and they haven’t had any problems with CRA doing this. So the best thing for you to do is contact a local trustee and see what CRA has been doing in your area.

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