CRA Tax Payment Plans
Some people simply have tax debt and don’t have the money to pay it. Over time, interest continues to grow and the tax debt becomes even more difficult to pay. Some people get behind filing tax returns, knowing that they will soon have a tax debt that they will not be in a position to pay off.
If you know that a tax debt is owed or that a tax debt will be owed once you become compliant (i.e. file the required returns) and are just simply not in a position to pay it, then what you have or are about to have is a financial problem.
Trying to make a CRA tax payment plan directly with the CRA (Canada Revenue Agency) is dangerous. This is because, in consideration of accepting a short term payment plan from you, they will often want significant financial disclosure, such as where you bank, where you work and where you live. This is in the hope that in the future, when your CRA tax payment plan expires or if you miss a payment, they can use enforcement action on your income, home or bank account to force you to pay your tax debt in full.
We often negotiate CRA tax payment plans for our clients. In addition, we offer a host of other financial resources to those who want to raise the funds to pay off the CRA once and for all or for those who can’t pay and need financial relief.
Some of these services include:
- Direct CRA tax payment plans
- Securing financing through a loan or mortgage to pay the tax debt (subject to credit approvals)
- Tax settlements
- Credit counselling
- In extreme hardship cases we can help you take action to obtain formal protection from the CRA – this is available under federal law but can damage your credit. We recommend it only when necessary.