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Tax Debt

Tax debt occurs where one is unable to pay their annual income taxes, penalties or interest. Often, it occurs as a result of being reassessed for more taxes than one believes they owe. As a result, the taxpayer is indebted to the CRA.

Enforcement Powers of the CRA

The CRA has far reaching powers. If you owe tax to the CRA, a collection officer will be assigned who has the discretion to apply harsh collection measures, including garnishment of your wages and bank account; placing a lien on your home; seizing physical property; offsetting your other government benefits; redirecting funds that are owed to you through a Requirement to Pay (RTP); or holding a third party liable for your tax debt such as a family member to whom you transferred money.

The CRA will also charge you interest on overdue balances, compounded daily. Currently, the interest levied is in accordance with the prescribed rate of 6%.

Why you Need a Tax Debt Lawyer

If your bank account has been frozen, your wages garnished or your assets seized, you need a strong tax debt lawyer to defend your interests against the CRA. At Kalfa Law Firm, our tax debt lawyers contact the CRA on your behalf and negotiate the removal of the garnishment or seizure in exchange for a voluntary payment plan arrangement through the Voluntary Disclosure Program.

If it appears that your combined debt is greater than your ability to pay, our tax debt lawyers can contemplate bankruptcy or a consumer proposal. If this is the most suitable option for you, these avenues can remove all or a good portion of your CRA debt.

Lastly, you may be eligible for Taxpayer Relief. Taxpayer Relief is a method to reduce or altogether remove the interest and penalties you have been levied.

FAQ’s:

We Can Help

Once you are represented by our tax law firm, the CRA will no longer contact you. In most cases, no further enforcement action will be taken against you. Our tax lawyers negotiate with the CRA directly, cease enforcement action and establish a voluntary payment plan. Our lawyers have the knowledge and experience in handling the CRA’s collection officers and collection practices.

Owe tax to the CRA and suffering from Garnishments? We’re here to help™.

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