Canada Revenue Agency (CRA) Payment Plan
We see many people who owe the Canada Revenue Agency (CRA) for taxes. Some of these people have attempted to enter into payment plans with CRA. If taxes are not paid the consequences can be severe: lost HST refunds, payroll and bank account garnishments and liens being registered against your house.
Before reaching a point of severe consequences, it’s essential to be informed about your financial options. Kunjar Sharma & Associates Inc. provides Credit Counselling Services in Toronto, giving you insights and guidance on managing debts, including those owed to CRA. If you’re dealing with mortgage insolvency due to CRA liens or other financial pressures, our firm can also assist with solutions to help protect your home.
CRA’s position is that payment plans they negotiate must provide for 100 percent of the taxes outstanding. No matter how well or hard you negotiate, CRA officers have limited discretion to adjust what is owed. Primarily their discretion is limited to granting payments over time and waiving additional interest and penalties if the payment plan is adhered to. When negotiating what you can afford to pay we have been advised by individuals that CRA questioned their budget provision amounts for such things as smoking, rent and payments towards their children’s education. Pressure may also be put on people to sell or collapse investments, even those assets that are protected from seizure by law. If you’re struggling with credit card debt in Toronto in addition to tax liabilities, our firm can help you explore debt solutions that can address multiple financial pressures at once.
What can you do if the distant horizon for payment of taxes in full is too far out or the monthly payment amount CRA is insisting on is too high? Only a Licensed Insolvency Trustee (LIT) can offer a plan to CRA that provides for less than 100% of the taxes outstanding. A consumer proposal is a legally binding contract that can provide for up to 5 years to pay and stops interest or penalties. In addition to consumer proposals, for businesses facing financial strain with the CRA, our firm also offers Corporate Proposal services, which aim to provide a tailored solution for corporations to settle their tax debts under structured terms. The savings can be as much as 40 to 80 percent depending on your specific circumstances. Sometimes consumer proposal payments can be as little as $100 per month. Call Kunjar Sharma & Associates Inc. today to discuss. We are here to help lift you up out of debt.