CRA and Consumer Proposal
August 6th, 2013 by Questions
If $150K are owing to the CRA from unpaid taxes through a sole proprietorship business, with roughly half of that interest and penalties, is a CP a viable option? CRA has put a lein on the house and is garnishing accounts (so it’s progressed to that point), and making payments is viable, but not on the entire $150K. Taxpayer relief has been filed, but CRA is still pushing things, will filing a CP halt this while the terms are being considered or is a tax lawyer a better bet in this circumstance? Thanks for any advice.
Posted from: Ontario
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August 06, 2013 at 8:51 pm, A licensed trustee said:
If CRA has registered a lien on your home then your tax debt is now the equivalent of a mortgage on you home. If you have equity in your home the lien will survive bankruptcy or a consumer proposal just like a mortgage on your home.
You should speak to a trustee about your situation, but it may be too late to do much about it. A tax lawyer might help if you think there are grounds to have the actual tax debt reduced. If the tax debt is reduced, the interest and penalties will be recalculated too. Of course the lien will still be in place and you will have to deal with it.