Garnishment is one of the many aspects in any tax system. The CRA (Canada Revenue Authority) has the authority to issue a tax garnishment when an individual (s) fails to meet their tax obligations. This CRA Garnishment Toronto authority can enforce such an action without necessarily going to court. Unlike other creditors, the CRA boasts of this extremely huge power. Lifting or reducing a CRA Garnishment Toronto enforcement order can be quite tricky or challenging. Actually, it is next to impossible. It can cause severe financial hardships. Your business or job is always at risk once you face such an action.
Legal Power of Canadian Revenue Agency
The Canada Revenue Authority has the power to impose close to 50% of your employment income and/or 100% of any other type of income. This includes even sub contractor income. If you own a business, the CRA sends notices to your clients urging them to re-direct all receives to its bank accounts until the income meets every penny owed to the authority. The fact of the matter is that a CRA Garnishment Toronto brings with it irreparable harm to your job or business. It is more than embarrassing. In the long run, it causes a major financial disruption. Consequently, meeting all your tax obligations is paramount.
One of the most effective and obvious ways of fighting off CRA Garnishment Toronto is by meeting all your tax responsibilities. By honoring your tax obligations, you are able to prevent or stop the CRA from freezing your bank account and placing a lien on your home or any other personal property. It is imperative to pay taxes on time and in full.
When You Should Consult A Tax Consultant?
There are some situations where one might not be able to pay the amount of taxes determined by the tax authority. In this case, the prudent thing is to consult with a tax consultant who has the experience and qualifications needed to negotiate with the CRA. The tax consultant will negotiate for a payment plan that is within your abilities and fair. Unlike you, the tax consultant will be able to arrange for low monthly payments with little or no interest charges. He or she can also arrange for withdrawal of additional penalties. It is much better to let the tax consultant handle the entire process for you than committing yourself to it.
When looking for a tax consultant, always do your research extensively. Take your time to find out other people’s experiences with that tax consultant you are considering. This will help you get the best qualified service providers.