debt
Spouse is self employed with large back taxes and gst debt, we pay monthly payments 1500.00 on tax, tax instalment and gst debt (total approx 80K) interest takes most of the payments so 3 yrs have done nothing to move the debt, rev canada has advised to pay minimum 4-5K (his net inc is approx 40K after exp) or claim bankruptcy, can it be claimed on taxes only? Can they refuse accpting what he can financially pay as we are now? thankyou
Posted from: Ontario
When you file for bankruptcy you legally have to list all of your debts, you can’t pick an choose. So you can deal with tax debt as part of a bankruptcy, but you have to deal with your other unsecured debts as well.
In terms of CRA being able to refuse what you feel can be paid? CRA is able to determine the amount they deem reasonable and should you not be able to meet the obligation as required they are not obligated to take your payment, instead they will typically start to garnish wages and seize bank accounts.