Know detailed information about CRA Arrears!

How do you go into Arrears?

Arrears occurs when you have one or more payments that you have missed or go overdue. It is when any amount of payment for bills or debt is missing or past due. When it is after the due date, your payment is considered late. This is especially true with mortgages, rent, royalties, water bills, child support, or other loans.

What is the CRA?

The CRA is the Canada Revenue Agency. It is the revenue service of the Canadian Government and its job is to provide benefit programs, give tax credits, and administer laws, policies, and taxes for the provincial, federal and territorial governments.

How Do you Get Out of Arrears?

I can help you through the process of getting out of Arrears with the CRA. Here are some helpful suggestions.

• Gather all outstanding tax documents, including income tax, and file them. Continue to file them on time from now on. You will discover the actual amount of debt you owe. By filing, you will show compliance with the CRA and the law.
• Once you are done filing, contact the CRA and provide the required income and expense documents. These are needed to show financial obligations so a monthly payment can be created.
• Take care of the debt first. Vacations or other extra expenses may have to wait until the debt is paid off.
• Stick to your payment plan. If you have trouble making payments, talk to the CRA about options.

When You Can’t Pay

Don’t worry if you can’t pay your debt in full. Payment plans can be set up by the CRA, where you will make regular payments over time. You can also speak to a Licensed Insolvency Trustee, or someone like me at Leverage Capital, who has experience in CRA Arrears. I can find solutions to your problem and help you handle the CRA. If you have to declare bankruptcy remember the CRA is just like other creditors when it comes to bankruptcy, so when filed, all collection activity will stop.

If you are facing CRA Arrears, and don’t know what to do, call me. Let me guide you and offer professional support and advice while we work towards getting out of income tax debt. Don’t be intimidated, be proactive. If you need help, Leverage Capital is the place to go so you can get back to doing what you love.