We have significant experience negotiating with CRA and we can help you. We also offer access to programs that can eliminate tax debt, penalties, interest and stop collection action.
Steep Business Losses Led to a Major Problem Paying Taxes
I started a small business. I didn’t bother withholding taxes because I was able to pay the amounts I owed upon filing each year. Each year my revenue increased until last year when it fell through the floor. I took a wave of contract cancellations, leaving me earning 30% of what I had been used to. Then my tax filing came due and I had to repay tax based on the higher earnings and because I had not been in the habit of holding back, I was in a serious problem. I ended up owing over $100,000 to the CRA between income tax and HST. I filed my returns to avoid penalties and kept hoping I would earn more to pay them down, but I didn’t. That’s when they started harassing me. I was sure if I didn’t do something they were going to place a lien on my home.
I explored different solutions. A tax lawyer wanted me to pay them $5,000 to make a taxpayer relief application to get me relief of interest, but in reality even with that I didn’t have the money to pay the CRA. I ended up filing a Consumer Proposal, which stopped the interest on my tax debt from accumulating. I ended up having to only repay 50% of what I owed and was able to continue doing business. Because I addressed everything before the CRA placed a lien on my home, I avoided that and was able to keep my home lien free.