Category Archives: CRA Garnishment

Can CRA Garnishments Be Avoided?

When there is money owed to the CRA it is likely that CRA garnishments will be used to recover the debt. There are a number of steps that will be taken and at times, you will not be informed of what is going to happen. If there is not a response that the CRA are happy with, they will proceed to take the money from your account. CRA garnishments is a tactic that the CRA will use if they believe it is the only way they will get their money.

The CRA are not the only people who can use this method, but it is easier for them to do it. They are able to move quickly and get their money under a “requirement to pay”. As they are part of the authorities, they don’t need to go through the same process and they will already have all the evidence they feel they need to go to this stage. If you are subject to CRA garnishments, then you need to work quickly and with professional help to get the problem resolved.

You will not get a great deal of warning, so you will be relying on other people who have more knowledge than you to get you out of this mess. As soon as you become aware of CRA garnishments, you should look for someone to go through the process with you, and deal with the difficult laws as you will not be able to deal with this yourself.

If you are aware that you are going to struggle to meet your commitments, then you should contact the CRA before they place CRA garnishments on you and your salary. Working with them will show that you are serious about wanting to pay what you owe, and the fact that you have employed someone to help shows them that you want to do what is right. CRA garnishments are not pleasant and you need to avoid them if you can.

In order to avoid CRA garnishments, you should make a sensible arrangement to pay. Be realistic about what you can afford to live on as if you offer too much you may fall behind, and if you offer too little it may appear that you are not taking this seriously. A tax professional can easily help you with the process of negotiation.

If you have left things too late and find that CRA garnishments have already been issued, you still need to act quickly to try and recover the situation. There may still be the chance that arrangements can be made. Don’t let it get this far when there are people who can solve the problem for you.

Dealing With A Wage Garnishment From CRA

When most companies or organisations want to take action against you, they will have to take you to court, but this is not the case when it comes to the CRA. They can take action without going through this process and the results of falling behind with your tax can lead to a variety of penalties. There can be a program put in place to allow you to pay, but often that option will not be given, and you will face a CRA tax garnishment.

There is no come back from this situation, as once the CRA tax garnishment is in place, you have to accept that there is going to be money taken from your salary weekly or monthly depending on how you are paid. Not only will you be unable to get them to stop taking the money, but they are unlikely to reduce the amount they take regardless of the situation it leaves you in. They will see that your debt to them over rides all others and the CRA tax garnishment of your wages will be in place until everything is paid off.

While you will struggle to get anywhere with your requests for reduced payments on your own, this does not mean that there is not a way to get help. There are companies who will know a great deal about the law and understand that there may be elements of the law that will work in your favor and allow you to have some relief from the financial burden you find yourself under.

When you consider that it is likely that the CRA will take 50% of your salary if you are working for someone else and it could be the lot if you are a sub-contractor. When you have a CRA tax garnishment your employer will be aware of it and apart from the fact that this will be embarrassing, it could also leave you in the position of having to accept unfavorable working conditions for a while as the employer knows you are in financial difficulty and not in a position to walk away.

It may seem that a CRA tax garnishment is the worst thing that can happen to you, but that is not always the case. They can freeze your bank account and then have any savings you have sent to them, or they could go as far as placing a lien on your property. A further worry is that fact that it is possible for more than one of the sanctions to be put into place.

If the bill is high enough they may decide that a CRA tax garnishment is not going to get them their money quickly enough and so do that in conjunction with one or both of the other two options. It is going to be to your advantage to employ a professional as soon as you become aware of a CRA garnishment, as the quicker they begin to help the quicker the nightmare ends.

CRA Tax Problem Help in Toronto and Other Canadian Cities

Many people in Canada find themselves facing a tax debt that may become too big for them to handle when CRA knocks at their doors and starts giving them deadlines to work out payment plans. It is not an easy task to deal with a CRA collections officer who could be aggressive.

Seeking tax problem help in Toronto or other cities in Canada becomes an important in part of handling the CRA tax people. CRA will generally accept a payment schedule that may stretch up to a period of six months. In order to clear yourself of a tax mess, you require professional tax problem help in Toronto or other Canadian cities because you have to understand thoroughly about the options available to you and how best you can begin to protect yourself and your business assets.

You really need some tax problem help in Toronto or other cities for there are cases when CRA will refuse to negotiate a payment plan which was thought as reasonable by you. This is where professional help and tax problem help will come in.

For any business enterprise or an individual, taxes have become one of the most difficult areas. The world has changed drastically and indifferent accounting just cannot pass. Consequently, thousands of business owners across Canada find themselves right in the middle of heavy tax problems leading to tax liabilities and they seek out tax problem help in Toronto and many other cities in Canada.

An individual facing tax problems may have reached that stage because of not being aware of the possible problems. By seeking tax problem help in Toronto or other cities, he or she could begin to avoid those problems and resolve them so that operation is possible in a tax worry free world.

People tend to ignore the communications they receive from the CRA collection centres. This is because they may be scared of the results that are linked with the kinds of tax problems they may have or that they require more time to come up with the finances to pay off their tax debts. Not taking tax problem help may result in a collection action from the CRA. If you feel that there is a tax problem, then it is advisable that you seek representation and tax problem help as early as possible.

The routine kinds of collection action that you may seek tax problem help in Toronto or many other Canadian cities could be handling demand letters from the CRA, financial disclosure requests, CRA garnishment to your wages and bank accounts that could get frozen. There may be additional action such as garnishment notices that may be sent to the financial institutions that you deal with along with liens on your property.

So, if you land into trouble when resolving a tax debt problem with the CRA, you need to seek out tax problem help in Toronto or other Canadian cities. When you seek professional tax help, you may buy time with the CRA collection practices. If your problem is pegged to coming forward with a payment schedule or a plan, you may take tax problem help.

How the CRA Collections System works?

Since 1^st August, 2005, the Canada Revenue Agency (CRA) has been given the responsibility of the cra collections of tax debts which was previously being handles by the Human Resources and Social Development Canada (HRSDC). CRA collection has the accountability for tax debts that are due to HRSDC through student loans, employment insurance, old age security, employment programs and Canada Pension Plan.

When the tax assessment or a reassessment is not paid, the balances which are unpaid are drawn from the relevant accounting system and these balances turn into collection accounts. There is a distinct accounting system for each line of revenue. The lines of revenue are corporate tax, personal income tax, Goods and Services Tax (GST) and salary deductions by all employers.

CRA Collections Agency

CRA Collections agency has to recover the entire balance of tax debts or make arrangements through individual payment plans from defaulters to recover the tax debt within a specified period of time. Recourse to legal action is taken when the defaulters are not able to arrange the filing of their tax returns. The kind of legal actions that can apply include certification of the debt in federal courts, garnishing of wages and accounts receivables, placing a lien on the assets of the taxpayer, setting off the tax debt against other government payments and seizing the assets of the taxpayer.

CRA Collections Agency can also take the tax defaulters and debtors to court in order to collect the debt which has not been paid. The procedures used by CRA Collections agencies to collect the outstanding tax debt amounts could be a combination of both automated and manual intervention. The CRA collection procedures may involve sending computer-generated letters, making reminder telephone calls, organizing field visits by the agents and sending legal notices.

The CRA collection activities take place through the Revenue Enforcement Management Information Tracking System (REMITS). This is done through a national collection call centre in the capital city of Ottawa and at eight other locations that organize collection for personal tax and Goods & Services Tax. The mode of collection will be determined by CRA collection authorities depending on the complexity as well as the size of an account.

REMITS of CRA collections arranges letters to all the tax debtors and takes care of specified accounts for which prior arrangements have been made. The call centre of CRA collection is responsible for outbound calls principally to those tax debtors whose outstanding amounts are below a specified dollar limit. The call centre is equipped with a telephone calling system which enables it to dial out to taxpayers automatically. The national pools make these outbound calls not considering any specific geographic boundaries for both individual tax and the Goods & Services Tax below a specified dollar limit.

CRA collection pools also conduct restricted enforcement actions such as garnishing the wages or accounts receivables of the taxpayers. The Tax Service Offices handle the more complicated accounts and conduct a range of legal enforcement like the seizing of assets or placement of liens on the properties of the tax defaulters.

CRA Garnishment Toronto

What is garnishment?

Garnishment is a legal process by which a creditor can reach a third party to receive what the debtor owes him. If someone in Toronto fails to pay the money he owes, the creditor can go to a court for garnishment order against the debtor. They can legally seize debtor’s money in his bank account, his salary or even other money he own in order to repay the debts.

Does a Toronto creditor always require court order?

The Toronto creditor does not require a court order if the debtor is in assignment of wages to credit union; or if the debtor owes unpaid taxes to the Canada Revenue Agency or CRA. The Canada Revenue Agency may directly notify debtor’s employer and may ask for immediate starting of CRA garnishment Toronto.

What does wage levy mean?

The wage levy is an enforcement action that is initiated by the CRA against someone for the purpose of unpaid taxes. It is just like the wage CRA garnishment Toronto.

What happens if there is a wage levy or wage garnishment?

If there is a CRA garnishment Toronto or a wage levy the employer will receive a garnishment order to withhold the specified amount from the wages of debtor.

In Toronto, what is the maximum amount for garnishment by a creditor?

The maximum amount for CRA garnishment Toronto is 50% of debtor’s gross monthly wages. However, if CRA puts a bank levy in addition to a wage garnishment, it can sometimes amount to 100% because the remaining 50% deposited in bank accounts will be taken away by the CRA.

What are the exceptions from CRA garnishment Toronto?

The social assistance and employment insurance cannot be garnished in the event of the CRA garnishment Toronto.

What is the process of garnishment?

A creditor has to apply to a court for garnishment. He will have to get the judgment order from court validating the debts and then will have to get the enforcement order for garnishment. He can also hire companies that will investigate debtor’s income and public documents for any property ownership. If the debtor has sufficient funds the creditor may initiate the CRA garnishment Toronto.

How can I stop CRA from garnishing my wages or seizing my bank account?

Anyone can have financial issues that may leave him unable to pay his taxes within the required period of time. You can always contact us to seek reliable and professional advice. We will guide you in the best possible way and will negotiate on your behalf with the CRA. We can get you such a payment plan that is in accordance to your capabilities. We can settle lower monthly payment plans for you with a little or no interest charges. You can always rely on us to stay protected against the CRA garnishment Toronto.

Dealing With A Bank Freeze by Canada Revenue Agency

When taxpayers have tax debts owing to the Canada Revenue Agency (or CRA for short) the CRA collection agents will begin to pursue legal collection action to recover the tax debts. One method that the CRA collection agents like to use to collect debt is by freezing a bank account commonly known as bank freeze.

Unexpected Bank Freeze

A frozen bank account can be extremely shocking and can cause tremendous financial stress. Many people feel frustrated when they find out that the bank has frozen all of the funds in their bank accounts. In general, however, bank freeze is a legal action aim for collection of tax debts. Taxpayers usually get pre-warning about the tax owing and potential legal enforcement actions: first you will be notified in writing that a tax debt is owed; then you will be sent another letter demanding payment of the tax debts; finally, a “Requirement to Pay” letter is issued to your bank, demanding the bank to freeze your bank accounts. Legally, the bank must freeze the bank account as instructed to be in compliance.

Damage of Bank Freeze

Once the CRA put on a bank freeze, your mortgage will for sure default and you will not be able to take money out even to buy groceries. You may have to open new bank accounts with another bank. In general, once the CRA has frozen a bank account. The credibility or trust you built over years will be compromised. The banks become cautious in dealing with you. After all, the CRA is one of the most powerful agencies in the country. Most banks will stop renew mortgages or offering credit and may even close your line of credits if you have them. Tax debts to CRA are the worst kind of debts banks want to get involved. Sometime, people with tax debts problem do take the path of filing for bankruptcy when facing the pressure of CRA legal actions.

Prevention of A Bank Freeze

If you have a large tax debt and have received tax debts notice from CRA asking for payment and your bank account has not yet been frozen by CRA, it is advantageous to act before the bank freeze occurs. Take action now doesn’t mean you need to come up with all the funds to pay off the tax debt. Acting now to get professional help to deal with your tax problem before the tax debts problems get out of control. Even if your bank account has been frozen you still have a chance to get them released. Getting a bank account unfrozen is difficult but can be achieved through various tax venues.

Call Tax 911 Now if you have just received the notice that you own taxes. We can start the process of negotiating an affordable tax payment plan. Or if your bank account has been frozen and you do not have the funds to pay, contact us. We can negotiate with CRA collection agent to release your bank freeze and coming up with a plan to deal with your tax debt. Contact Tax 911 Now at 1-877-918-2991 Today!