If you have tax still owing to the Canada Revenue Agency, there are a couple different ways to help you get rid of the debt. The CRA acts very fast and will take extreme actions to get the tax owing from you so you must be quick to act.
There are multiple ways to help get rid of tax debt with the Canada Revenue Agency. However, you need to keep in mind three very important factors that will help you in doing this. You must consider, your history with the CRA, the amount owing, and the ability to pay. These factors depending on where you stand, can help you negotiate with the CRA or get a plan in action. Now to get a plan with the CRA they will set some conditions, some being that you will have some time to pay off your debt but you will have to pay the full amount owed in the end, along with the fact that your unpaid debt will gain interest as well.
Instead of negotiating with the CRA, you can also file a proposal with the bankruptcy and insolvency act (BIA). After doing that you can negotiate a compromise or settlement of any outstanding tax debt without going bankrupt. Going with this method does two things. The Canada Revenue Agency could take a deducted amount of your owing funds and extra interest will stop as soon as you file your proposal.
If negotiating the payment and or filing the proposal with BIA does not work, then the only thing that you can do to deal with the debt is to just file for bankruptcy. Using this method anything you owe will be gone. You will not owe any GST, HST, or income tax anymore to the government.
In conclusion always consider the three factors of how much you owe to the CRA, your relationship with the CRA, and how you will be able to pay. Without knowing where you stand with these three factors, finding a method to reduce the impact from your tax debt will be extremely hard.
Muhammad Nasrullah,CPA, CGA, LPA
Chartered Professional Accountant
Licensed Public Accountant
206A – 2365 Finch Ave. West North York, ON. M9M 2W8
Tel: (1) 416-748-0817 ext 101 Fax:(1) 416-748-6814
www.nasrullahcga.com E-mail: firstname.lastname@example.org