Can the CRA Garnish Your Wages or Seize Your Property?
Do you have a debt owing to the CRA? Does the CRA feel like loan shark?
The CRA’s power to collect taxes dwarf those of your other creditors. You have to be aware of the risks and be able to assert your rights.
If you are indebted to the CRA, they can:
- Seize or Freeze your bank accounts
- Garnish your wages
- Garnishing of other income sources (ex. receivables)
- Lien your property or force its sale
- Seize or sell your assets
A certificate/debt is registered by the CRA with the Federal Court, with the same effect as a legal judgment against you. Also, the CRA is not obligated to inform you of these proceedings.A notification may or may not have been delivered to you, and you may be unpleasantly surprised.
Based on a certificate, you are either required to pay the total amount claimed or risk having your property and other assets seized.It is vital you get help from a professional if you owe the CRA money or they’ve obtained a certificate against you.
If a notice arrives claiming a tax debt, Faris CPA will help you understand if and why you owe the CRA money. We can design a plan to get you back in financial shape and avoid bankruptcy.
If paying the total amount owing is not an option, we can help negotiate a favourable payment plan that enables you to live your life on your own terms, not on the CRA’s. We can also arrange a stay of collections requiring the CRA to stop legal actions against you.
Don’t let the CRA push you around. Contact Faris CPA today at 1 844 340 5771 instead. We will help you understand and exert your rights.
Call us today at for a Confidential Initial Assessment about any accounting or tax matters. As an experienced, certified, licensed, and expert tax accounting firm we help our clients handle all tax and accounting issues. Give us a call today at 1 844 340 5771.
Sam Faris is a Toronto-based Chartered Professional Accountant who practices as an independent consultant on high-level Canadian tax matters and handles disputes with CRA. He has recently published an article a business magazine: HERE
Does CRA need a court order to garnish wages?
No, the CRA does not need a court order to garnish wages. The employer is required to deduct or withhold funds from the employee’s pay and send the money directly to the CRA.
What type of bank account is exempt from garnishment in Canada?
The types of bank accounts that are exempted from garnishment in Canada are income from social assistance or social security programs, employment insurance, or old age security and pension plans.
What is a CRA lien?
A CRA lien is a method used to urge individuals or businesses to pay debts owed to the Canada Revenue Agency (CRA). The CRA places liens on the property of the tax debtor to secure its interests.