If you have a tax debt then there is no doubt that you have thought about how you can get taxpayer relief (in other words treated fairly by CRA [Canada Revenue Agency] in a way that you can do the right thing and survive). There are different ways to get taxpayer relief and how you do it will depend on your personal circumstances. In this blog we will review the top 3 ways that you can get taxpayer relief.
- If you can substantiate that you have suffered extreme financial hardship, medical problems or a natural disaster (that contributed to your tax problem) to the satisfaction of the CRA, the CRA may grant forgiveness of interest and penalties under the Taxpayer Relief Program. This involves a lengthy approval process and you must be able to prove the claims in your application. This is a viable option to achieve taxpayer relief but not everyone is approved – this kind of application should be made on your behalf by a tax professional. But beware, there are no second chances, and if done incorrectly the first time your chances of success a second time are all but diminished.
- You can also achieve taxpayer relief by coming up with a way to pay your tax debt. The relief you will experience once the financial stress of worrying about how you will pay your tax debt cannot be quantified. There are many financial solutions to raise the funds to pay your tax debt, such as mortgage products. A skilled organization that specializes in CRA negotiation can not only help you to raise the funds to pay your tax debt but can also negotiate a direct and final monthly payment plan with the CRA that you otherwise could not negotiate on your own.
- You can also achieve taxpayer relief by making a proposal to the CRA. When making a proposal to the CRA, and depending on your personal and financial circumstances, you may be able to reduce the size of your tax debt. If your proposal is accepted, you will be able to make a low monthly payment that you can afford, the interest that has been accumulating on your tax debt will be frozen and CRA collection action in most cases will cease.
Taxpayer relief can come in many forms – both financial and personal. Facing a debt you can’t pay, especially to the government, comes with stress, anxiety, depression and a myriad of other health and relationship problems. Be fair to the CRA and to yourself. The best way to do this is to face your tax problem and get taxpayer relief!
To see if you qualify for taxpayer relief please visit www.taxsolutionscanada.com or call 888-868-1400.