The words, CRA Arrears, can be frightening to hear. No one plans to go into debt, and not to go into arrears with the CRA. You can be intimidated by having to deal with the government, but there are ways to get through this situation successfully and rather stress-free. You will not be left unable to meet daily needs and expenses if you just follow the advice of qualified professionals like Leverage Capital. Let’s take a look at what the CRA is, what it does, and what to do if you find yourself in CRA Arrears
The CRA, or Canada Revenue Agency, is a part of the Canadian Government. It is the revenue service that administers policies and laws, taxes, gives tax credits and benefit programs for most provincial and territorial governments as well as the federal government.
The CRA contributes to the economic and social health of Canadians by administering programs, benefits, administering taxes, and ensuring compliance on behalf of the government.
Arrears is when one or more payments for a debt are overdue or have been missed. The amount of the arrears starts from the due date of the first missed payment. Arrears can refer to various payments such as water bills, child support, rent, loan payments, and royalties for example.
When any amount for payment in an account becomes overdue, and it’s after the due date, for things like mortgages or loans, your payment is considered late.
The CRA will take measures only when they are unable to come to an agreement with the person involved, or the person fails to file income tax returns or other documents like a GST/HST Return. Without going through the court system, the CRA can do the following to take collection actions:
Although getting out of this situation sounds like it can be stressful, there are some ideas available to guide you and begin the process of getting out of arrears with the CRA.
Sometimes the debt is just too much, and you will need to get help. If you can’t pay what you owe in full, the CRA will try to set up an appropriate payment plan. You will end up paying regular payments over a set time frame.
You will need to speak to a Licensed Insolvency Trustee or a qualified person like Leverage Capital who specializes in CRA Arrears. They can help you find options for your situation. For some, the CRA debt may be included in bankruptcy or consumer proposal. CRA is usually treated like other creditors when dealing with bankruptcy, so when it is filed, collection activity stops.
Leverage Capital can offer support, guidance, and professional advice for you during this process and to help you stay away from getting into more income tax debt. You can get a financial assessment that will help you deal with CRA debt issues. This is the perfect situation where you need to speak with an expert to find the solution that works for you. Speak to someone who really cares about your future, call Leverage Capital today.
