The Government of Canada needs to rein in the CRA Collections Department

Canada Revenue Agency

The CRA administers tax laws for the Government of Canada and for most provinces and territories with reckless abandon and a lack of responsibility. The CRA collections team are bullies hiding behind fake names, who do not allow for any documented contact, and have no regard for the citizens of this country. The collections arm of the agency regularly thumb their noses to the law and have minimal controls. We believe in paying our fair share of taxes, having the right to object to incorrect investigations and audits with clarity and cooperation. These are our rights as individuals, small business owners and most importantly as taxpayers.

Tell Your Story

Personal Income Tax

Learn about your obligations and your rights. Late on personal taxes? Need help understanding how to navigate the complexitites of personal tax filings.

Small Business

97.8% of all businesses in the Province of Ontario alone have between 1 and 99 employees. The smaller the business, the more support you need and bigger the bullies are in CRA Collections.

GST/HST

Collecting and filing is one thing. Understanding how to avoid “Tax stacking” and how to minizimize your tax liability position is important to your ongoing success.

Collections Officers

We’ve compiled a handy list of all publicly available collections officers information including their LinkedIn Profiles.

Bullying

They’ll say and do anything without regard for the person on the receiving end of their bullying behaviour.

Harassment

Hire a lawyer? Having someone represent you? They do not care. They do not abide by laws or rules. They are above the law.

I paid around $10000 in excess TFSA contribution because of their incompetent/broken TFSA system.

Navigating Excess TFSA Contributions in Canada: A Step-by-Step Guide for Frustrated Investors If you’ve accidentally contributed $10,000 over your TFSA limit due to confusion with contribution room tracking or system limitations, you’re not alone. While the CRA’s TFSA system can be challenging to navigate, here’s how to resolve the issue, minimize penalties, and potentially appeal…

The CRA Union

CRA Layoffs – Who is Marc Brière?

The CRA is laying off 600 temporary workers but the question remains, if they are temporary workers then it really isn’t a layoff is it? It’s the end of their term. Still complaints come in from spoiled CRA staff: “”The employees will be gone but the workload will remain.” Boo. Hoo. “A lot of people…

Tower on Parliament Hill in Ottawa

CEBA Loan Repayment Deadline – What Can Small Buisinesses Do?

The Canada Emergency Bank Account (CEBA) loan repayment deadline is set for January 18, 2024. The CEBA program provided up to $60,000 in interest-free loans to small businesses and non-profits across Canada to help them navigate the economic challenges of the COVID-19 pandemic. The federal government loaned out $49 billion in CEBA funds to nearly…

What to do if you owe the money to the Canada Revenue Agency?

In Canada, you are generally required to file a tax return if any of the following apply to you:

  • You are a Canadian resident: This includes individuals who live and work in Canada permanently, as well as newcomers to Canada, factual residents temporarily abroad, and emigrants who still have Canadian income[1][3].
  • You earned taxable income: If you earned income from employment, self-employment, investments, or other sources during the year, you must file a tax return[1][4].
  • You want to claim benefits or credits: Even if you have no taxable income, filing a tax return is necessary to access certain government benefits and credits such as the Canada Child Benefit (CCB), GST/HST credit, and provincial/territorial benefits[5].
  • You want a refund: If too much tax was deducted from your income during the year, you need to file a return to claim any refund owed to you[5].
  • You sold property or have capital gains: If you sold property like real estate or shares, or if you are reporting capital gains from previous years, you must file a return[4].

Additionally, there is no minimum income threshold for filing taxes in Canada. Even if your income is non-taxable (e.g., social assistance payments or child support), the Canada Revenue Agency (CRA) still requires everyone to submit a tax return[1].

The deadline for most individuals to file their taxes is April 30 of the following year. For self-employed individuals, the deadline is extended to June 15, but any taxes owed must still be paid by April 30[1][4].

Citations:
[1] https://accountor.ca/blog/taxation/who-is-required-to-file-taxes-in-canada.html
[2] https://students.ubc.ca/enrolment/finances/taxes/filing-taxes-canada
[3] https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/who-should-file-tax.html
[4] https://www.legalline.ca/legal-answers/when-do-you-have-to-pay-your-taxes/
[5] https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/you-have-file-a-return.html

To file your taxes in Canada, you will need to gather various documents related to your income, deductions, and credits. The specific documents required may vary depending on your personal situation, but here is a comprehensive list of the most common documents you should have ready:

Personal Information

  • Social Insurance Number (SIN)
  • Date of birth (for you, your spouse, and dependents)
  • Updated mailing address and direct deposit banking information

Income Documents (Tax Slips)

  • T4 slips: Employment income
  • T4E: Employment insurance benefits
  • T4A: Pension, annuity, or retirement income
  • T3, T5, T5008: Investment income (interest, dividends, mutual funds)
  • T2202 or TL11: Tuition and enrollment certificates (if applicable)
  • T5007: Social assistance or worker’s compensation benefits
  • T4RSP/T4RIF: Registered Retirement Savings Plan (RRSP) or Retirement Income Fund (RIF) withdrawals
  • T5013: Partnership income
  • Other slips: Any additional income sources such as rental income or self-employment earnings

Receipts for Deductions and Credits

  • RRSP contribution receipts
  • Charitable donation receipts
  • Medical expenses receipts
  • Childcare expenses
  • Union or professional dues
  • Moving expenses (if applicable)
  • Home office expenses (for self-employed individuals or those working from home)
  • Disability Tax Credit certificate (if applicable)

Other Supporting Documents

  • Last year’s notice of assessment from the CRA
  • Previous year’s tax return (helpful for first-time filers)
  • Capital gains information (e.g., sale of stocks, bonds, or real estate)
  • Rental property income and expense records
  • Vehicle logbook (for self-employed individuals or commissioned employees)
  • Correspondence from the Canada Revenue Agency (CRA), such as reassessments or installment payment amounts

Special Situations

If you are self-employed or own a business, you will also need:

  • Business income and expense records
  • Automobile/travel logbook and related expenses

Having these documents organized will make the tax filing process smoother and ensure that you claim all eligible deductions and credits[1][2][3].

Citations:
[1] https://www.greenbacktaxservices.com/faq/documents-need-to-file-canada-tax-return/
[2] https://www.wealthsimple.com/en-ca/learn/what-do-i-need-to-file-my-return-checklist
[3] https://www.hrblock.ca/canadian-tax-checklist
[4] https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/getting-ready-file-your-taxes-by-paper-need-to-know.html
[5] https://www.getsmarteraboutmoney.ca/learning-path/understanding-tax/how-and-why-to-file-your-taxes/

Checking Your Balance Owing
You can check your balance owing to the CRA through the following methods:Online: Log in to your CRA My Account. Once logged in, go to the “Accounts and payments” section to view your account balance, available payments, and any instalment payments.
By Phone: Call 1-800-959-8281 to inquire about your balance. You will need to provide personal details such as your Social Insurance Number (SIN), date of birth, and address for verification.
Checking Your Refund Status
Online: Use the CRA’s My Account service to securely check the status of your tax refund. Ensure that you wait at least 8 weeks after filing a paper return or 2 weeks after filing online before checking.
By Phone: Call the CRA automated refund line at 1-800-959-1956 for an update on your refund status

To register for a MyCRA account (My Account for individuals) with the Canada Revenue Agency (CRA), follow these steps:

1. Choose a Registration Method

You have two options to register:

  • Sign-In Partner: Use your existing online banking credentials from one of the CRA’s partner financial institutions.
  • CRA User ID and Password: Create a new CRA user ID and password.

2. Gather Required Information

Before starting, ensure you have the following:

  • Social Insurance Number (SIN)
  • Date of Birth
  • Current postal code
  • Details from your most recent tax return (e.g., an amount from a specific line)

3. Start the Registration Process

  1. Visit the CRA’s My Account webpage at canada.ca/my-cra-account.
  2. Select either:
  • “Sign-In Partner Login/Register” if using your online banking credentials, or
  • “CRA Register” if creating a new CRA user ID and password.

4. Complete Initial Registration

  • If using a Sign-In Partner, log in with your banking credentials, then provide the requested personal information (SIN, date of birth, postal code, and tax return details).
  • If creating a CRA user ID and password, follow the prompts to create your login credentials and set up security questions.

5. Receive and Enter Your CRA Security Code

After completing the initial registration, you will receive a letter from the CRA within 10 business days containing your CRA security code. You can also call the CRA to get this code sooner.

  • Log back into your account using the method you registered with (Sign-In Partner or CRA user ID).
  • When prompted, enter your security code to gain full access to all My Account services.

6. Access Your Account

Once you’ve entered your security code, you will have full access to manage your tax and benefit information, update personal details, check refund statuses, sign up for direct deposit, and more[1][2][3].

By following these steps, you’ll successfully register for MyCRA and access its full range of services.

To set up direct deposit with the Canada Revenue Agency (CRA), there are several methods you can use. Here’s a step-by-step guide based on the available options:

1. Online via My Account

  • Step 1: Sign in to your CRA My Account.
  • Step 2: Navigate to the Profile section.
  • Step 3: Scroll down to Direct Deposit and select Edit.
  • Step 4: Enter your banking information (institution number, branch number, and account number).
  • Step 5: Confirm and save your changes.

2. Through Your Financial Institution

  • Some Canadian banks and credit unions allow you to sign up for CRA direct deposit through their online banking platforms.
  • Once you provide consent through your bank, your direct deposit information will be updated with the CRA by the next business day.

3. By Phone

  • You can call the CRA at 1-800-959-8281 to set up or update your direct deposit information.
  • Be prepared with:
    • Your Social Insurance Number (SIN).
    • Your full name, date of birth, and current address.
    • Information from your most recent tax return or notice of assessment.
    • Your banking details (institution number, branch number, and account number).

4. By Mail

Important Notes:

  • Do not close your old bank account until you confirm that the first payment has been successfully deposited into your new bank account.

To set up a payment arrangement with the Canada Revenue Agency (CRA), follow these steps:

1. Assess Your Financial Situation

  • Before contacting the CRA, calculate your monthly income and expenses to determine how much you can reasonably afford to pay. The CRA offers a payment arrangement calculator to help estimate your payments and any interest that may accrue[1].

2. Contact the CRA

  • You can set up a payment arrangement by either:
    • Calling the CRA: Use the CRA’s TeleArrangement service at 1-866-256-1147, or call their debt management call centre at 1-888-863-8657[5][6]. You’ll need your Social Insurance Number (SIN), date of birth, and information from your most recent tax return (such as the amount on line 15000 of your notice of assessment).
    • Online via My Account: Log into your CRA My Account, select “Proceed to pay,” and choose “Schedule a series of payments” to set up a pre-authorized debit (PAD) agreement.

3. Provide Necessary Information

  • Be prepared to provide:
    • Full name and date of birth.
    • Your assessed return or notice of assessment.
    • Your financial situation, including income, expenses, assets, and liabilities.

4. Agree on Payment Terms

  • The CRA will work with you to establish a payment plan based on your ability to pay. Payments are typically spread over time until your debt is fully paid, but interest will continue to accrue on any unpaid balance.

5. Make Payments

  • Once the payment arrangement is in place, ensure you make payments on time. You can pay online through pre-authorized debit, in person at your bank, or by mail. If you face difficulties making a payment, contact the CRA immediately to renegotiate the terms.

By following these steps, you can successfully negotiate a payment plan with the CRA and avoid penalties or more aggressive collection actions.

If you do not pay a debt to the Canada Revenue Agency (CRA), there are several consequences that can occur. The CRA has broad powers to collect debts, and ignoring your debt can lead to significant financial and legal repercussions. Here are the main consequences:

1. Interest and Penalties

  • The CRA charges interest on unpaid balances, which compounds daily. Additionally, if you file your tax return late or miss payment deadlines, you may also incur penalties.

2. Garnishment of Wages or Bank Accounts

  • The CRA can issue a Requirement to Pay (RTP), which allows them to garnish your wages or take money directly from your bank account. This means your employer or bank will be legally required to send part of your income or funds to the CRA to cover your debt.

3. Withholding of Government Benefits and Tax Refunds

  • The CRA can withhold federal payments owed to you, such as tax refunds, GST/HST credits, Canada Pension Plan (CPP) payments, and Old Age Security (OAS) benefits. These amounts will be applied directly toward your outstanding debt.

4. Liens on Property

  • The CRA can place a lien on your property, including real estate or other valuable assets. This legal claim ensures that if you sell the property, the proceeds will go toward paying off your debt before you receive any funds.

5. Seizure and Sale of Assets

  • If the debt remains unpaid after a lien is placed, the CRA can escalate its actions by seizing and selling your assets (e.g., home, car, business equipment) to recover the outstanding amount.

6. Legal Action

  • The CRA can take legal action by certifying your debt in Federal Court, making it a matter of public record. This allows them to pursue more aggressive collection actions, such as seizing assets or garnishing wages without further notice.

7. Impact on Credit Score

  • While the CRA does not report directly to credit bureaus, certain legal actions (such as liens or court judgments) may indirectly affect your credit score if they become part of public records.

8. Jeopardy Orders

  • In cases where the CRA believes there is a risk that they will not be able to collect the full amount owed (e.g., if you are attempting to hide assets), they may apply for a jeopardy order. This allows them to take immediate legal action without waiting for standard collection restrictions.

Conclusion:

Failing to pay a debt owed to the CRA can lead to severe financial consequences, including wage garnishments, asset seizures, liens on property, and withholding of government benefits. It is essential to address any debts with the CRA promptly by setting up a payment arrangement or seeking taxpayer relief if you’re unable to pay in full.

The Canada Revenue Agency (CRA) has several powerful tools at its disposal to collect unpaid debts. Here are the primary methods the CRA uses to recover amounts owed:

1. Garnishment of Wages or Bank Accounts

  • The CRA can issue a Requirement to Pay (RTP), which allows them to garnish wages or seize funds from your bank account. This means that your employer or bank will be legally required to send a portion of your income or funds directly to the CRA until the debt is paid off.

2. Set-Offs (Redirecting Government Payments)

  • The CRA can redirect any money owed to you by the federal government, such as tax refunds, GST/HST credits, Canada Pension Plan (CPP) payments, or Old Age Security (OAS) benefits, and apply these amounts toward your debt. This process is known as a “set-off.”

3. Liens on Property

  • If you owe a significant amount and fail to make payment arrangements, the CRA can register your debt in Federal Court, which gives them the legal right to place a lien on your property, such as your home. This lien ensures that if you sell the property, the proceeds will go toward paying off the debt.

4. Seizure and Sale of Assets

  • In more severe cases, the CRA can seize and sell your assets, including real estate, vehicles, or other valuable property. While this is less common, it is a last-resort measure that can be taken if other collection efforts fail.

5. Legal Action and Court Judgments

  • The CRA can certify your debt in Federal Court without warning. Once certified, it has the same legal standing as a court judgment, allowing the CRA to take further legal actions like garnishing wages or seizing assets.

6. Third-Party Demands

  • The CRA can also issue demands on third parties who owe you money or hold assets for you (e.g., business partners, financial institutions). These third parties will then be required by law to send those funds directly to the CRA.

Conclusion:

The CRA has extensive powers to collect unpaid debts, including garnishing wages, redirecting government payments, placing liens on property, seizing assets, and taking legal action through court judgments. If you owe money to the CRA and cannot pay in full, it’s important to contact them early to negotiate a payment arrangement and avoid these more severe actions.

If the Canada Revenue Agency (CRA) garnishes your wages, it means they are collecting unpaid tax debts directly from your paycheck. Here’s what you can do to address the situation:

1. Understand the Garnishment

  • The CRA can garnish up to 50% of your wages if you are an employee, and up to 100% of your income if you are a contractor or self-employed. This is done through a Requirement to Pay (RTP) notice sent to your employer, requiring them to withhold a portion of your wages and send it directly to the CRA.

2. Contact the CRA Immediately

  • The first step is to contact the CRA as soon as possible. Open communication shows that you are willing to resolve the issue. You can explain your financial situation and try to negotiate a more manageable payment plan. The CRA may be willing to reduce or stop the garnishment if you can demonstrate financial hardship and offer an alternative payment arrangement.

3. Negotiate a Payment Arrangement

  • You can propose a payment arrangement that fits within your budget. The CRA may agree to stop or reduce the garnishment if you commit to regular payments that will settle the debt over time[5]. Be prepared with documentation showing your income, expenses, and any financial difficulties you are facing.

4. Prove Financial Hardship

  • If you are facing significant financial hardship due to the garnishment, you can provide evidence such as income statements, expense reports, and any relevant documentation (e.g., medical bills, job loss) that demonstrates why you cannot afford the garnishment amount[5]. The CRA may consider reducing the amount being garnished or suspending it temporarily based on your circumstances.

5. Consider Legal Options

  • If negotiation with the CRA does not work, there are legal options available:
    • Consumer Proposal: Filing a consumer proposal with a licensed insolvency trustee can immediately stop wage garnishments. This is a formal agreement where you propose paying back part of your debt over time, and it legally halts all collection actions, including garnishments.
    • Bankruptcy: Declaring bankruptcy also stops wage garnishments through an automatic stay of proceedings under the Bankruptcy and Insolvency Act.

6. Seek Professional Help

  • If you’re unsure how to proceed or feel overwhelmed, consider consulting a Licensed Insolvency Trustee or a debt relief agency. They can help you explore options like consumer proposals or bankruptcy, which can stop garnishments and help manage your debt more effectively.

If the CRA is garnishing your wages, act quickly by contacting them to negotiate a payment plan or prove financial hardship. If necessary, explore legal options like filing a consumer proposal or bankruptcy to stop the garnishment and protect your income.

The Canada Revenue Agency (CRA) has a collections limitation period that determines how long it can take action to collect a tax debt. This period is typically either 6 or 10 years, depending on the type of debt.

Key Points:

  1. 10-Year Limitation Period:
  • For individual income tax and corporate tax debts, the CRA has 10 years from the date the limitation period starts to collect the debt. This period begins 91 days after the issuance of a Notice of Assessment (NOA) or Notice of Reassessment (NOR).
  1. 6-Year Limitation Period:
  • For certain types of debts, like payroll deductions and GST/HST, the CRA has a shorter limitation period of 6 years to collect.

Restarting or Extending the Limitation Period:

The limitation period can be restarted or extended if certain actions occur, such as:

  • You make a voluntary payment.
  • You negotiate or propose a payment arrangement.
  • The CRA takes collection actions, such as garnishing wages, seizing assets, or certifying your debt in Federal Court.

What Happens When the Limitation Period Ends:

Once the limitation period ends, the CRA is legally barred from taking further collection actions against you. This means they cannot garnish wages, seize assets, or take legal action to recover the debt[4].

In summary, the CRA generally has 6 to 10 years to collect unpaid tax debts, but this period can be extended or restarted based on specific actions taken by either you or the CRA.

If you ignore the Canada Revenue Agency (CRA) debt collection efforts, several serious consequences can follow. The CRA has extensive powers to collect unpaid debts, and failing to address these can lead to significant financial and legal repercussions. Here’s what can happen if you ignore their collection efforts:

1. Increased Debt: Interest and Penalties

Ignoring your debt will not make it go away. Instead, interest and penalties will continue to accrue on the unpaid balance, making the total amount owed much higher over time. This can significantly increase your financial burden.

2. Legal Action

The CRA can take legal action to recover the debt. This may include:

  • Garnishing wages: The CRA can issue a Requirement to Pay, which allows them to garnish a portion of your wages or other income sources.
  • Seizing bank accounts: They can freeze your bank accounts and withdraw funds directly from them.
  • Placing liens on property: The CRA may place a lien on your property (e.g., your home), which prevents you from selling it until the debt is paid.
  • Seizing assets: In extreme cases, the CRA can seize and sell assets such as vehicles or real estate to recover the debt.

3. Impact on Credit Score

Although the CRA does not directly report to credit bureaus, certain actions like legal judgments or liens on property may indirectly affect your credit score. A lower credit score can make it more difficult to obtain loans, credit cards, or mortgages in the future.

4. Loss of Government Benefits

The CRA can withhold or redirect government payments you are entitled to, such as tax refunds, GST/HST credits, or Canada Child Benefits, and apply them toward your outstanding debt. This is known as a set-off.

5. Jeopardy Orders for Immediate Collection

In cases where the CRA believes there is a risk that they will not be able to collect the full amount owed (e.g., if you are attempting to hide assets), they may apply for a jeopardy order, allowing them to take immediate legal action without prior notice.

6. Aggressive Collection Tactics

Ignoring the CRA’s communications can lead to increasingly aggressive collection tactics. This could include frequent phone calls, letters, and more severe legal actions over time. While there are regulations governing how they must conduct these efforts, it can still cause significant stress.

7. Legal Proceedings

  • If you continue ignoring collection notices, the CRA may initiate formal legal proceedings against you. This could result in court appearances and judgments that further enforce wage garnishments or asset seizures.

Ignoring CRA debt collection efforts leads to escalating consequences, including increased debt due to interest and penalties, legal actions like wage garnishment or asset seizure, damage to your credit score, and loss of government benefits. It is critical to address any outstanding debts with the CRA promptly by contacting them to negotiate a payment arrangement or seeking professional help if necessary.

When negotiating a payment arrangement or addressing debt with the Canada Revenue Agency (CRA), it’s important to gather comprehensive documentation that provides a clear picture of your financial situation. This will help the CRA assess your ability to pay and determine a reasonable payment plan. Below are the key documents you should collect:

1. Income Information

  • Recent pay stubs or income statements (e.g., T4 slips) to show your current earnings.
  • Self-employment income: If you’re self-employed, provide statements or records of your business income.
  • Government benefits: Documentation of any government benefits you receive (e.g., Employment Insurance, Canada Pension Plan, Old Age Security, GST/HST credits).

2. Expense Information

A detailed list of your monthly expenses, including:

  • Rent/mortgage payments
  • Utilities (electricity, gas, water)
  • Groceries
  • Transportation costs (car payments, insurance, public transit)
  • Childcare costs
  • Medical expenses (prescriptions, insurance premiums)
  • Other recurring bills (e.g., phone, internet)

3. Bank Statements

  • Recent bank statements for the past 3-6 months to demonstrate your cash flow and spending patterns.
  • These statements will help show how much money is coming in and going out each month.

4. Credit Card and Loan Statements

  • Recent statements for all credit cards and loans (e.g., personal loans, car loans) showing your outstanding balances and minimum monthly payments.

5. Assets and Liabilities

  • A list of all your assets, including:
    • Real estate properties (home, investment properties)
    • Vehicles
    • Investments (RRSPs, TFSAs, stocks)
    • Savings accounts
  • A list of liabilities such as:
    • Mortgage balances
    • Car loans
    • Personal loans
    • Credit card debt

6. Tax Documents

  • Your most recent Notice of Assessment (NOA) from the CRA.
  • Any correspondence or notices from the CRA regarding the outstanding debt.
  • Previous tax returns if applicable.

7. Proof of Financial Hardship (if applicable)

If you’re claiming financial hardship, you may need to provide additional documentation to support your case:

  • Medical reports or bills if health issues are affecting your ability to pay.
  • Proof of job loss or reduced income (e.g., layoff notice).
  • Any other documents that demonstrate extraordinary circumstances affecting your finances.

8. Form RC376: Taxpayer Relief Request – Statement of Income and Expenses

If you are requesting taxpayer relief due to financial hardship, you may need to complete and submit Form RC376, which provides a detailed breakdown of your income, expenses, assets, and liabilities.

9. Payment Arrangement Calculator Results

You can use the CRA’s payment arrangement calculator to estimate what you can afford to pay each month. Having these calculations ready can help during negotiations.

Gathering these documents ahead of time will help you present a clear and accurate picture of your financial situation when negotiating with the CRA. Being well-prepared will increase the likelihood of reaching a manageable payment arrangement that fits within your budget while satisfying the CRA’s requirements.

If you miss a payment under a CRA (Canada Revenue Agency) payment plan, it is important to take immediate action to avoid potential consequences. Here’s what you should do:

1. Contact the CRA Immediately

If you realize that you have missed a payment or are unable to make an upcoming payment, you should contact the CRA as soon as possible. By doing so, you may be able to modify your payment arrangement or discuss other options to avoid legal actions such as wage garnishment or asset seizure. The CRA prefers proactive communication and may be more flexible if you reach out before they take action.

2. Modify Your Payment Arrangement

The CRA allows taxpayers to change their payment arrangements if their financial situation changes. You can request a modification by calling the CRA. This could involve adjusting the payment amount or deferring a payment to a later date[1][4]. It’s important to note that interest will continue to accrue on any unpaid balance until the debt is fully paid.

3. Make a Partial Payment

If you cannot make the full scheduled payment, consider making a partial payment. While this won’t prevent interest from accruing, it can help reduce the overall amount of interest you owe on the remaining balance. Partial payments show good faith and may help in negotiations with the CRA.

4. Be Aware of Potential Consequences

Failing to make your payments without contacting the CRA could lead to serious consequences, such as:

  • Wage garnishment
  • Seizure of assets
  • Redirection of federal benefits (e.g., GST/HST credits, Canada Child Benefit)[4][6]
    The CRA typically provides verbal and written warnings before initiating legal actions, but it is crucial not to ignore these communications.

5. Consider Taxpayer Relief

In some cases, if extraordinary circumstances prevent you from making payments, you may be eligible for taxpayer relief. This could result in penalties and interest being reduced or waived. However, this relief is granted only under specific conditions, such as financial hardship or natural disasters.

By taking prompt action and communicating with the CRA, you can manage missed payments and potentially avoid more severe consequences.

Yes, you can dispute what you owe the Canada Revenue Agency (CRA) by filing a formal objection if you disagree with an assessment or reassessment. Here’s how the process works:

Steps to Dispute What You Owe:

  1. Contact CRA First: Before filing a formal objection, it is recommended to contact the CRA directly to discuss the issue. Often, disputes arise from miscommunication or missing information, and contacting the CRA may help resolve the issue without needing a formal objection.
  2. File a Notice of Objection: If you are unsatisfied after discussing with the CRA, you can file a formal objection. This must typically be done within 90 days from the date of your Notice of Assessment or Reassessment. You can file an objection online through your CRA account or by mailing Form T400A (Notice of Objection).
  3. Provide Supporting Documents: When filing your objection, you must explain why you believe the assessment is incorrect and provide all relevant facts and documents to support your case.
  4. Review by Appeals Officer: Once your objection is filed, it will be reviewed by an appeals officer who was not involved in the original assessment. The officer will evaluate both your information and the CRA’s original position and may contact you for further details.
  5. Outcome of the Review: The appeals officer may:
  • Vacate (cancel) the assessment if they find it was incorrect.
  • Reassess (adjust) the amount owed.
  • Confirm (uphold) the original assessment if they find no errors.

What Happens If You Miss the Deadline?

If you miss the 90-day deadline to file an objection, you can apply for an extension of time. This application must be made within one year after the 90-day deadline has passed, and you need to explain why more time is needed.

Additional Options:

  • Taxpayer Relief Provisions: If you are unable to pay due to financial hardship or other extraordinary circumstances, you may also request relief from penalties or interest under taxpayer relief provisions.
  • Appeal to Tax Court: If your objection is denied, you have 90 days to appeal the decision to the Tax Court of Canada.

By following these steps, you can formally dispute what you owe and ensure that your case is reviewed impartially.

Yes, you can hire a representative to help you dispute your Canada Revenue Agency (CRA) assessment. The CRA allows taxpayers to appoint an authorized representative, such as a tax professional, lawyer, or accountant, to assist with filing objections and communicating with the CRA on their behalf.

Here are the key steps:

  1. Appointing a Representative: You can authorize a representative through the CRA’s “Represent a Client” service. This allows your representative to file a Notice of Objection and communicate with the CRA on your behalf.
  2. Filing a Notice of Objection: If you disagree with your assessment, your representative can help you file a Notice of Objection (Form T400A) either online or by mail. This formal objection must be submitted within 90 days of the date on the Notice of Assessment or Reassessment.
  3. Communicating with the CRA: Once an objection is filed, an appeals officer will review the case. Your representative may engage in discussions with the officer, provide additional documentation, and help clarify any issues.
  4. Appeal Process: If necessary, your representative can also assist in appealing the decision further to the Tax Court of Canada if you’re unsatisfied with the outcome of the objection process.

In summary, hiring a representative can be very helpful in navigating the complex process of disputing a CRA assessment and ensuring that your case is presented effectively.

Yes, there are several firms and professionals known for successfully disputing CRA (Canada Revenue Agency) assessments. These firms and individuals specialize in tax law and have a track record of helping clients resolve disputes with the CRA. Here are some notable examples:

1. Boughton Law – Jeff Glasner

Jeff Glasner, a tax lawyer based in Vancouver, has over 20 years of experience representing individuals and corporations in disputes with the CRA. He is known for his success in defending clients during the CRA Appeals process and negotiating favorable outcomes, even in complex cases involving aggressive CRA tactics. His clients have praised him for reducing assessments significantly, including cases where the CRA initially demanded large sums of money. For example, one client faced a reassessment of over $250,000, which was completely reversed after Glasner’s intervention.

2. Rotfleisch & Samulovitch P.C. (Taxpage.com)

This Toronto-based law firm has helped thousands of clients fight CRA assessments. They specialize in tax dispute resolution and have a strong record of achieving favorable outcomes for their clients. Their case studies highlight numerous successful settlements with the CRA, including cases involving denied small business deductions, unreported income, and principal residence exemptions. In one case, they secured a settlement that allowed their client to claim all input tax credits that had been denied by the CRA.

3. Faris CPA

Faris CPA is a firm that specializes in helping individuals and businesses dispute CRA assessments. They guide clients through the formal objection process and ensure that all necessary documentation is submitted correctly to challenge the CRA’s findings. Their expertise lies in identifying errors made by auditors and organizing disputes effectively to achieve favorable resolutions.

4. Sansar Solutions

Sansar Solutions is another firm that assists individuals and businesses with disputing CRA assessments. They emphasize the importance of filing objections within the required 90-day window and offer professional guidance throughout the objection process to ensure that all relevant documentation is included and properly presented.

5. Counter Tax Lawyers

Counter Tax Lawyers are known for their expertise in handling tax disputes at the Tax Court stage, where they have successfully challenged aggressive tactics used by the CRA. In one notable case (Choptiany v HMK), they helped enforce severe consequences against the CRA when its agents violated court orders during a tax dispute[5].

These firms have proven expertise in navigating complex tax disputes with the CRA and achieving successful outcomes for their clients through negotiations, settlements, or court rulings.

Choosing a reliable CPA to help dispute a CRA (Canada Revenue Agency) assessment requires careful consideration of several key factors to ensure you receive the best possible representation. Here’s a detailed guide on how to make an informed choice:

1. Qualifications and Licensing

Ensure that the CPA you choose is licensed and qualified to handle tax disputes in Canada. A Chartered Professional Accountant (CPA) designation is essential, but additional qualifications in tax dispute resolution or experience with CRA assessments are highly valuable. Verify that the CPA is familiar with Canadian tax laws, including the Income Tax Act, and has the necessary credentials to represent you before the CRA.

2. Experience in Tax Disputes

Not all CPAs specialize in tax disputes, so it’s crucial to find one with specific experience in this area. A CPA who regularly handles CRA disputes will be more adept at navigating the complexities of tax assessments, audits, and objections. Ask about their track record in resolving cases similar to yours and their familiarity with CRA processes, such as filing Notices of Objection or appealing decisions. An experienced CPA can anticipate challenges and offer strategic advice tailored to your situation.

3. Knowledge of Canadian Tax Law

Tax disputes often involve intricate legal and procedural issues. Ensure that your CPA has a deep understanding of Canadian tax law. This knowledge is particularly important if your case involves complex tax issues or if there’s a possibility of escalating the dispute beyond informal discussions with the CRA, such as filing formal objections or appeals.

4. Reputation and References

A CPA’s reputation can provide valuable insights into their reliability and effectiveness. Look for client reviews, testimonials, or case studies that highlight their success in handling CRA disputes. Don’t hesitate to ask for references from previous clients who faced similar challenges. A CPA with a strong reputation in tax dispute resolution is more likely to handle your case professionally and competently.

5. Communication Skills

Effective communication is critical when dealing with a CRA dispute. Your CPA should be able to explain complex tax concepts clearly and keep you informed throughout the process. They should also have strong negotiation skills, as they may need to liaise with CRA officials on your behalf to resolve the dispute. Clear communication ensures that you understand your options and feel confident in the steps being taken.

6. Conflict Resolution Skills

In addition to technical expertise, soft skills like conflict resolution are important when dealing with CRA disputes. A skilled CPA should be able to negotiate effectively with CRA auditors or officials, finding common ground where possible while advocating for your best interests. This can help expedite the resolution process and increase your chances of a favorable outcome.

7. Availability and Responsiveness

Tax disputes often come with tight deadlines, especially if you need to file an objection within 90 days of receiving a Notice of Assessment (NOA). Ensure that your CPA has enough availability to handle your case promptly and isn’t overloaded with other clients. Timely responses are crucial when dealing with CRA deadlines.

8. Ethics and Integrity

Trustworthiness is non-negotiable when choosing a CPA for a tax dispute. Verify that they adhere to a strict code of ethics and are members of reputable professional associations like CPA Canada. Given that they will have access to sensitive financial information, it’s essential that you feel confident in their integrity and discretion.

9. Initial Consultation

Many CPAs offer an initial consultation where they assess your case and discuss potential strategies for resolving the dispute. Use this opportunity to evaluate whether they understand your situation, provide actionable insights, and demonstrate a genuine commitment to helping you resolve your tax issue. This consultation can also help you gauge their communication style and whether they are a good fit for your needs.

By considering these factors—qualifications, experience, knowledge of tax law, reputation, communication skills, conflict resolution abilities, availability, ethics, and an initial consultation—you can select a reliable CPA who will effectively represent you in disputing a CRA assessment.