Comments on Dealing with Revenue Canada (CRA) from Bankruptcy Nova Scotia

Is is possible to make a deal with Revenue Canada (now known as the Canada Revenue Agency or CRA) for taxes you owe?

Yes. Here's how to make a deal with CRA for tax payments.

Negotiate Payment Terms with Revenue Canada

First, if you owe Revenue Canada and cannot pay the balance of taxes in full, it is possible to negotiate payment terms with Revenue Canada. Contact your nearest Revenue Canada office. Explain your circumstances, and negotiate a tax payment plan. For example, if you owe $1,000, you may offer to pay $100 per month for the next ten months. It will be up to Revenue Canada to decide if they will accept your offer, or take further action against you to collect the taxes owing.

Two points to remember:

	Whatever deal Revenue Canada agrees to, you will continue to be charged penalties and interest until your debt is paid in full.
	If you cannot reach an agreement with Revenue Canada, they have the power to withhold child tax credits and GST credits until your debt is paid. They also have the power to garnish your wages and take funds from your bank account, so treat this debt seriously.

Will Revenue Canada settle for less than the full amount owing?

As a general rule, Revenue Canada will not accept less than the full amount owing. Their logic is simple. If they allow you to pay less than the full amount owing, they may be forced to make the same deal with everyone else.

However, there is a way to make a deal with Revenue Canada for less than the full amount owing, you must file a proposal.

If you live in Nova Scotia, contact a nearby expert today for more information.