Solutions for Tax Debt and Tax Relief
If you have a tax debt and you know that there is no realistic way that you can re-pay it, even on a monthly basis, then you are likely looking for tax relief.
There are different ways that you can go about achieving relief from your tax debt. The method will greatly depend on your personal and financial circumstances.
Tax relief can be achieved a number of ways.
If you have had a severe medical condition, financial hardship or a natural disaster has occurred that has caused your tax problem, you may qualify for relief through a CRA Taxpayer Relief Application. These applications will not reduce the principal tax debt, but may cancel all or a portion of the interest and penalties.
You must be able to prove your claim and applications are approved on a case by case basis. The CRA Taxpayer Relief Application process is an official process and your chances for success increase if you use a professional organization that has experience with preparing these applications. We have significant experience preparing CRA Taxpayer Relief Applications on behalf of our clients.
Consumer Proposal or Bankruptcy
Tax relief can be achieved through a consumer proposal or bankruptcy. When a consumer proposal is made, CRA (Canada Revenue Agency) collection action will stop, interest will be frozen and your principal tax debt and penalties may be reduced. As a member of the Farber Financial Group, we have the professional resources required to arrange a fully represented consultation with a trustee to discuss tax relief options that may involve a consumer proposal or bankruptcy.
We know that each person‚Äôs situation is different, and while you may not be able to afford to repay the CRA monthly, you may be able to pay the terms of a low rate line of credit, loan or mortgage. Our financial professionals can review your finances and have the resources to help you secure financing to pay off your tax debt (if you qualify).