CRA Arrears Oshawa

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Going into arrears can be stressful and intimidating. When the CRA gets involved it will help to know what the CRA really is, how it works, and what it actually does. I can help you at Leverage Capital with my qualified and expert advice when it comes to CRA Arrears Oshawa. There is no need to worry if the CRA contacts you, and I am here to help you.

What is the CRA?

The CRA is the Canada Revenue Agency. It is attached to the government of Canada and is a revenue service that gives tax credits, provincial, federal and territorial benefit programs, taxes, and administers laws and policies.

The CRA doesn’t just swoop in and demand payment. The group will only take action when no agreement is made with the person involved, or if the person involved does not file any income tax returns or other required documents such as a GST/HST Return.

There are a few things the CRA can do for collections without having to go to court.

Wages can be garnisheed, 50% for employment gross income. With subcontractor income, it can be 100%.
Bank accounts can be frozen, funds can be seized on deposit.
Income tax returns that haven’t been filed can be assessed and interest applied to the outstanding debt, and penalties can be applied.
If a property can be sold to pay a debt, the CRA can put a lien on a property.

The CRA also collects on overpayments of family and child benefits and GST/HST tax credits. If you have an owning balance, the CRA can keep a part of the future payments or keep all of it until the debt is paid off.

What does the Canada Revenue Agency Do?

The Canadian Revenue Agency assists and contributes to the social and economic health of the Canadian public by administering taxes, programs, benefits, and making sure everyone is in compliance with the government.

How Do You Go Into Arrears?

When you miss payments or let your payments become overdue, you can go into arrears. When a payment becomes overdue, and its due date passes, the payment is considered late. You can go into arrears with any payments, including mortgage, rent, loan payments, royalties, child support, and water bills. Arrears begin from the first missed payment’s due date.

Getting out of CRA Arrears Oshawa

Take a deep breath. The easiest way to get out of arrears is to simply pay the money you owe. The Agency just wants you to pay the tax debt. Here are a few more suggestions to help with the processes of getting out of CRA Arrears.

Make sure you file your income tax returns on time and file all outstanding documents as soon as you can. By doing this, the CRA can see you are trying to work with them and are complying with the law.
Filing taxes and other documents help to determine what you actually owe in terms of debt. It will help you plan for future tax returns.
Cut down expenses you can live without, this will include vacations and other recreational activities just until the debt issue is resolved.
After you file your tax returns, call the CRA and let them know. Once again, doing this shows you are trying to find a solution to the issue. Make sure you have any required documents (usually expense statements, proof of income, and anything else that shows financial obligations.)ready, they will be needed to determine monthly payments.
Make a payment plan you can follow. If you are finding yourself struggling, or know you may have problems one month, contact the CRA and speak with them. It is important to communicate. This group wants to see you being proactive in finding a solution to the issue.

When You Can’t Pay

When the debt is just too high and paying in full is not possible, the CRA will work with you to set up a payment plan that will work for you. Usually, you will end up making regular payments for an agreed period of time. There are Licensed Insolvency trustees you can speak to or someone like me who is experienced with CRA Arrears Oshawa at Leverage Capital. The CRA may recommend consumer proposal or even bankruptcy. Since the CRA is like a creditor, once a bankruptcy is filed, all collection activity ceases. You can pay your debt off over time.

Ask me, at Leverage Capital, to help guide you through this difficult time with qualified, experienced advice and support so you can get out of CRA Arrears Oshawa. I can help you from taking on more debt and staying out of debt so you can get back to enjoying life. Call me today if you wish to know more.

Contact Leverage Capital today!

Leverage Capital can offer support, guidance, and professional advice for you during this process and to help you stay away from getting into more income tax debt. You can get a financial assessment that will help you deal with CRA debt issues. This is the perfect situation where you need to speak with an expert to find the solution that works for you. Speak to someone who really cares about your future, call Leverage Capital today.