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Is is possible to make a deal with Revenue
Canada (now known as the Canada
Revenue Agency or CRA) for taxes you owe?
Yes. Here's how to make a deal with
CRA for tax payments.
Negotiate Payment Terms with Revenue
Canada
First, if you owe Revenue Canada
and cannot pay the balance of taxes in full, it is
possible to negotiate payment terms with Revenue Canada.
Contact your nearest Revenue Canada office. Explain
your circumstances, and negotiate a tax payment plan.
For example, if you owe $1,000, you may offer to pay
$100 per month for the next ten months. It will be
up to Revenue Canada to decide if they will accept
your offer, or take further action against you to
collect the taxes owing.
Two points to remember:
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Whatever deal Revenue
Canada agrees to, you will continue to be
charged penalties and interest until your
debt is paid in full. |
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If you cannot reach an
agreement with Revenue Canada, they have the
power to withhold child tax credits and GST
credits until your debt is paid. They also
have the power to garnish your wages and take
funds from your bank account, so treat this
debt seriously. |
Will Revenue Canada settle for less
than the full amount owing?
As a general rule, Revenue Canada
will not accept less than the full amount owing. Their
logic is simple. If they allow you to pay less than
the full amount owing, they may be forced to make
the same deal with everyone else.
However, there is a way to make a
deal with Revenue Canada for less than the full amount
owing, you must file a proposal.
If you live in Thunder Bay Ontario,
contact
us today for more information.
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