Dealing with tax debt can be stressful. The Canada Revenue Agency is considered one of the worst creditors with massive powers to ensure everyone pays what they owe. You can pay huge amounts of penalties and interests on all the overdue tax. You may not even enjoy some tax credits until the tax debt is settled. The CRA can even take money out of your salary or straight from your account if you don’t pay up. To avoid any of these, you need to speak to a qualified debt relief expert to discuss suitable debt solutions for this kind of debt.
The CRA may never be willing to accept partial income tax payments which is why you need to treat this form of debt very seriously. York Credit can help you to deal with tax debt before the agency takes stringent measures that disrupt your day to day life. We will help you determine exactly how much tax you owe. If you haven’t submitted all your tax returns, we will guide you through this process.
We will start by offering you the simplest solutions to deal with income tax debt. Our team can even help you to come up with a payment schedule that you can easily manage and present it to the CRA. We will review options like filing a consumer proposal in order to deal with tax debt. If you decide to file the consumer proposal and it is accepted, all creditors including the CRA will be bound to the proposal. We can schedule a meeting with you together at the CRA to discuss the terms of the proposal before filing if this is the best option for you to eliminate tax debt.
The other option you might have to deal with tax debt is to file for bankruptcy. This may eliminate the tax debt even though it will have some serious effects on your credit score for many years. We will first review your situation to ensure that your tax liability is going to be eliminated completely when you file for bankruptcy. Our experts can also advise you on ways to avoid future tax obligations. There’s so much to consider when advising a client on the steps to take when owing the CRA.