Income Taxes and Consumer Proposals

The purpose of this section is to address the most common questions regarding income taxes and your consumer proposal. If you have additional questions, please feel free to call us at 1-800-472-7775 or send us your question in the comment box below.

What tax debts are included in a consumer proposal?

A consumer proposal will include all of your income tax debt related to years prior to the calendar year in which your consumer proposal is filed.

For example, filing a consumer proposal today would deal with your tax debts up to December 31 of last year. It would not include tax debts related to this calendar year.

What if I owe income tax for the year I file the consumer proposal?

If you owe money for income tax for the year in which you filed the consumer proposal then you will be responsible for paying that year’s tax liability.

Do I get to keep my refunds in a consumer proposal?

Generally, the answer is yes. If you filed a consumer proposal today and are entitled to a refund, most times you will receive it.

The exception to the general rule is if you had income tax debts from prior years. The Canada Revenue Agency (CRA) will withhold a refund related to the year your consumer proposal was filed up to the amount of the tax debts from prior years.

Does Hoyes, Michalos & Associates file my income tax returns?

No. When you file a consumer proposal, you are responsible to prepare any outstanding tax returns and keep current with future income tax return filings. You must ensure you file your income tax returns by April 30th of each year.

Email Your Question to the Proposal Group