Top
 

CRA TAX PAYMENT PLANS

CRA TAX PAYMENT PLANS

CRA TAX PAYMENT PLANS

A payment arrangement is an agreement you make with the CRA. It allows you to make smaller payments over time until you have paid your entire debt including applicable interest.

Before you make a payment arrangement, you may need to show that you have tried to pay your debt in full by borrowing money or reducing your expenses. To figure out your ability to pay, they may ask you to provide proof of your income, expenses, assets, and liabilities. You may have to do this by telephone or by completing a financial questionnaire.

Some people simply have tax debt and don’t have the money to pay it. Over time, interest continues to grow and the tax debt becomes even more difficult to pay. Some people get behind filing tax returns, knowing that they will soon have a tax debt that they will not be in a position to pay off.

If you know that a tax debt is owed or that a tax debt will be owed once you become compliant (i.e. file the required returns) and are just simply not in a position to pay it, then what you have or are about to have is a financial problem.

Trying to make a CRA tax payment plan directly with the CRA (Canada Revenue Agency) is dangerous. This is because, in consideration of accepting a short term payment plan from you, they will often want significant financial disclosure, such as where you bank, where you work and where you live. This is in the hope that in the future, when your CRA tax payment plan expires or if you miss a payment, they can use enforcement action on your income, home or bank account to force you to pay your tax debt in full.

We often negotiate CRA tax payment plans for our clients. In addition, we offer a host of other financial resources to those who want to raise the funds to pay off the CRA once and for all or for those who can’t pay and need financial relief.

With over 30 years of tax experience and expertise the Tax Mechanic is here to listen, provide the best solution, peace of mind, and ongoing support. To book a free consultation with us simply visit our website and click on the GET HELP NOW button, call us 1-888-359-1490 Ext 2 or email us at david@taxmechanic.ca

Share

Mr. Simpson has been active in income tax consulting, residential and commercial real estate development since 1985. Prior to founding the Tax Mechanic, he held several senior management positions, including Director of Land development for a real estate investment company (John DiPoce Management) and Controller of Communicorp Multi Media Inc., a TSX listed company. Mr. Simpson obtained his Bachelor of Arts degree from York University, Toronto, and qualified as a Chartered Accountant in 1993. He has also completed the Canadian Securities and Partners, Directors and Senior Officers courses.

No Comment

Post a Comment

© 2019 Tax Filing Services Toronto - Taxmechanic.ca. All Rights Reserved.
Powered by TechWyse