Tax debt occurs where one is unable to pay their annual income taxes, penalties or interest. Often, it occurs as a result of being reassessed for more taxes than one believes they owe. As a result, the taxpayer is indebted to the CRA.
Enforcement Powers of the CRA
The CRA has far reaching powers. If you owe tax to the CRA, a collection officer will be assigned who will garnish your wages, garnish your bank account, place a lien on your home, seize physical property, set off your other government benefits, redirect funds that are owed to you through a Requirement to Pay (RTP), or hold a third party liable for your tax debt such as a family member to whom you transferred money.The CRA will also charge you interest on the unpaid amounts, compounded daily. Currently, the interest levied is in accordance with the prescribed rate of 5%.
Why you Need a Tax Lawyer
If your bank account has been frozen, your wages garnished or your assets seized, you need a strong tax lawyer to defend your interests. At Kalfa Law, we contact the CRA on your behalf and negotiate the removal of the garnishment or seizure in exchange for a voluntary payment plan arrangement.
If it appears that your combined debt is greater than your ability to pay, we can contemplate bankruptcy or a consumer proposal. If this is the most suitable option for you, these avenues can remove all or a good portion of your CRA debt.
Lastly, you may be eligible for Taxpayer Relief. Taxpayer Relief is a method to reduce or altogether remove the interest and penalties you have been levied.
We Can Help
Once you are represented by our firm, the CRA will no longer contact you. In most cases, no further enforcement action will be taken against you. Our lawyers negotiate with the CRA directly, cease enforcement action and establish a voluntary payment plan. We have the knowledge and experience in handling the CRA’s collection officers and collection practices.
Owe tax to the CRA and suffering from Garnishments? We’re here to help™.