March is here and April is quickly approaching – it’s time to sit down and do your taxes. For many people, their employer has deducted just the right amount to keep Canada Revenue Agency and other tax departments happy and all of the stress is over nothing. For others, the whole situation creates a feeling of panic. If you’re asking yourself how you’ll ever pay the tax debt you owe, what legal action and collection efforts can be taken against you for that tax debt, or even if you haven’t filed for a year or more, Krieger & Company can help.
You might owe tax debt for any number of common reasons:
- Self-employed individuals who haven’t made sufficient, or any, tax installments throughout the year
- Working multiple jobs which may hold back tax at the wrong tax rate
- Retired individuals who receive multiple pensions and not enough tax is being deducted
- Cashing in RRSPs at a time of need and not putting aside the tax on those withdrawals
- Reassessment of prior years’ tax returns
- Not filing tax returns due to lack of funds to pay the tax, creating a tidal wave of penalties and interest
- Self-employed individuals who have spent the HST previously collected
- Past neglect of your tax problems
Krieger & Company is here to help, providing an unbiased review of your financial situation.
Just a handful of options we’ll discuss in detail include:
- Objecting to the assessment by CRA, if the assessment is in error
- Working out a repayment plan for the full amount directly with Canada Revenue Agency over a short period of time
- Applying for taxpayer relief for a reduction of penalties and interest (only) in extraordinary circumstances
- Filing a consumer proposal or division I proposal which will stop the interest, penalties, garnishments, and legal actions against you. These proposals can ONLY be filed through a licensed insolvency trustee and can result in affordable payments, reducing the total amount owed on tax and other debts
- Filing an assignment in bankruptcy, enabling someone in critical circumstances to get a fresh start
Most importantly, you can’t ignore your tax debt. The Income Tax Act gives CRA special powers to collect tax debt quickly and forcefully without the normal court process, resulting in garnished wages, pensions, and bank accounts, or taking control of your accounts receivable or property. Once CRA has taken action, your options are even more limited in how to approach your tax problem.
“In this world nothing can be said to be certain, except death and taxes.”
If you’re stressed about dealing with amounts you owe in income tax or have other credit problems, including with your business, Krieger & Company can help. Seek advice early from a licensed insolvency trustee who is here to help you through your tax situation. We have over 17 years of experience in helping honest individuals work through complex tax issues in ways that are acceptable to Canada Revenue Agency and affordable for you to manage.
Schedule your free, no-obligation consultation now or give us a call so we can start to help.