Tax debt

October 29th, 2012 by Questions

Will a consumer proposal cover the amount we owe to CRA for last years taxes? If we wait until after this years taxes are due will it include those as well? We owe 10,500 income tax and $3500 HST. Come April we will owe at least another $10,000 which we won’t be able to pay! So is it better to wait to do the consumer proposal until we owe the next $10,000.

Posted from: British Columbia


One Response to “Tax debt”

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

Yes, a consumer proposal will include the amount you owe to CRA for anything up to and including the date you file the consumer proposal.

In terms of being better or not, it is difficult to say without knowing your situation in detail but normally it is better to file sooner than later. No point staying on a ship that is sinking until the last moment when the ship can be fixed earlier!

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