The New Year is here and many resolutions on Canadians’ lists deal with getting a handle on their debt. This is a particular priority for many who owe back taxes to CRA. The one bright side of owing back taxes – you cannot be prosecuted for tax evasion for owing back taxes as you can for not filing returns or failing to declare income. On the bad side, once you owe, CRA collections will come at you with brute force.
The best thing to do if you owe back taxes is to begin 2015 with a plan to deal with them – so we have compiled a short list of tips:
- Review your budget – look very hard at your budget and what you can commit to paying monthly. Be realistic!
- Look at your assets – what do you have that could be leveraged to deal with your tax debt?
- Consult a tax professional – and we are not talking about an accountant. You are going to need a company experienced in dealing with CRA negotiations.
- Avoid direct communication with CRA – we are not saying ignore them, we are saying put someone in between you and them. If you speak to them directly they will deploy tactics to get you to divulge personal information about yourself that will later be used against you.
- Take a deep breath – dealing with CRA is not fun. The right tax negotiation intermediary will take away a lot of the pain.
Ignoring your tax problem will only lead to financial disaster. CRA is more powerful than other creditors. They do not need Court approval to attack you. You can find a solution – you just need the right help in your corner.
For more about how to start 2015 with a plan to get rid of your back taxes, please contact Tax Solutions Canada today by calling 1.888.868.1400.