The Canada Revenue Agency (CRA) is what we call an involuntary creditor. The CRA does not lend you money, but if you do not pay your taxes they become your creditor. If you owe tax debts to the Canada Revenue Agency, there are steps you can take to deal with that debt. It is even possible to make an arrangement to settle tax debts through a consumer proposal.
Our quick infographic explains
- Who typically owes tax debts,
- What action CRA can take to collect if you have a tax liability.
- Options you have to deal with tax debts.
A few other things to note:
- CRA will still want you to file your tax returns. Prior to filing a consumer proposal or bankruptcy this is necessary to determine your actual liability.
- If you file bankruptcy or a consumer proposal your trustee will prepare a pre- and post-bankruptcy return.
- After filing CRA will want to ensure that you continue to file your tax returns.
- For more information read our Guide To Dealing With Tax Debts or listen to our special podcast about An Indepth Look At Tax Solutions