CRA tax arrears
Here are a few tips if your business has CRA tax arrears.
1. Always pick-up the phone when CRA calls. If you can’t pick it up, call them back as soon as possible. You want CRA to know that you are not avoiding them.
2. Always ask the CRA agent if they are assigned to your file. If they are, make sure you get the proper spelling of their name, their phone number, office
address and fax number. Also, ask for the name and phone number of the team leader.
3. Never make a repayment arrangement without first speaking with your bookkeeper, accountant, or other person or company familiar with dealing with CRA.
4. Always file your GST/HST, payroll, tax and other returns on time even if you cannot send in any money owing. By sending in your returns on time, you will not
be charged a penalty for late filings. (You will still be charged interest.)
5. When you file and you are unable to pay your GST/HST and payroll remittances in full, always pay your payroll remittance first. Payroll payments are the
most important ones to pay.
6. Do not let CRA bully you into a repayment plan that you cannot afford.
Your business does not just owe the money. You and all the directors of your business owe the tax arrears personally, if the business fails to repay the arrears.
If you do not co-operate with the CRA agent on your file, eventually CRA will garnish your business account. At that point, effectively your business will be closed,
as you will be unable to pay any of your debts.
Once your business accounts have been garnished, it is almost impossible to have the garnishment lifted unless you seek the help of a Licensed Insolvency
Trustee. So try to avoid getting to that point with CRA.
Here are two examples of to illustrate what an expert such as Money Consultants can help you with when CRA contacts you about your tax arrears.
Contact
416-565-9455
michael@moneyconsultants.ca
Michael Yasny
