cra and consumer proposal

i just wanted to share this with others who owe cra money and want to make a consumer proposal. if cra is the deciding vote ( i believe if they are owed over 67 percent of the outstandind debt )…if you give anything less than 100 percent they will bankrupt you. i found out the hard way as my tax lawyer offered them 90 percent and bankrupted me even though i could have paid a 100 percent….so please let your people here know cra unlike other unsecured lenders will likely accept nothing less than 100 percent pay back

Posted from: Ontario

One Response to “cra and consumer proposal”

A licensed trustee said...

Your story is not uncommon, but reader’s need a bit more information. If you have always filed your taxes on time, but simply have not been able to pay them, CRA is more receptive to a consumer proposal. Their staring position for engotiations is 100% of the tax debt, but they can be flexible in these cases.

If you haven’t filed your taxes for a number of years and then file them all togther and immediately file a consumer proposal then they will demand 100% of the actual tax debt (no interet or penalty charges).

You cannot use a tax lawyer or anyone other than a licenced trustee to file a consumer proposal.

If you have issues like this with the tax man, ask whatever trustee you are spekaing to how many proposals they file each month and how much success they’ve had dealing with CRA. It varies widely by firm – we have had a great deal of success dealing with CRA and we file 200 – 300 proposals a month, BUT we won’t let you file something that we know they will outright refuse. Just something to think about.