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.
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 orderagainst 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.