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Stop Enforcement Action (e.g. CRA Garnishment)

The CRA (Canada Revenue Agency) can take enforcement action against you without going to court. This is a huge power that they have – every other creditor must get a court order first before being able to take enforcement action. The CRA does not need to warn you or get a court order to come after you.

When the CRA takes enforcement action against you, imposing a CRA garnishment for example, it can be impossible to get them to reduce or lift the enforcement action on your own. You could be experiencing extreme financial hardship or your job or business could be at risk, but it won’t matter, because once the CRA tightens their grip you will find it difficult to get them to loosen it.

If the CRA is taking action against you, click here to contact us now.

We routinely negotiate the reduction and removal of enforcement measures which include:

CRA Garnishment

The CRA can impose a garnishment of up to 50% of employment income and up to 100% of other types of income including sub-contractor income. They can also send a demand to the clients of businesses or business owners to re-direct receivables to them. A CRA garnishment is embarrassing, can cause major financial disruption, and can cause irreparable harm to a business and/or business owner. If the CRA is garnishing you or threatening you, please click here to contact us now.

Requirement to Pay – Frozen Bank Account

When the CRA (Canada Revenue Agency) decides to freeze a bank account they will send you and the bank a letter called a “Requirement to Pay”.  This letter will indicate the amount of the tax debt, the terms of the “Requirement to Pay” and it will direct the bank to freeze your bank account. The bank will then hold the frozen funds for a period of time and then forward them to the CRA.

This leaves you with:

  • No way to pay your bills
  • No way to conduct business
  • Nowhere to deposit your income

If you want to avoid a Requirement to Pay or get one lifted, click here to request a free consultation with our team.

Property Lien

If you own a home the CRA (Canada Revenue Agency) can register a property lien against you at any time. A tax lien will cause you major problems. You will have difficulty selling or refinancing your home until you have paid the lien or resolved your tax problem. Existing mortgage holders will also be notified of the lien and this may damage your relationship with them.

If the tax lien is greater than the equity in your home, this represents an even larger challenge because existing mortgage holders will not be able to renew without the CRA moving into first position on title. This means that if you have a lien on your property you should be looking for a solution to deal with it well before any existing mortgages that you have on your home come up for renewal. We are often successful at negotiating the postponement and removal of liens imposed by the CRA.

The CRA can also deploy multiple enforcement actions against a single taxpayer with respect to a single tax problem. For example, if you owe the CRA $50,000, they could freeze your bank account, place a lien on your home and impose a CRA garnishment. We are your best defense against the CRA!

Click here to contact us to see if the CRA has registered a lien on your home.