CRA or the Canada Revenue Agency is an agency of the Canadian Government. This agency sets and enforces the tax policy on the national level. It also handles the taxes for many Canadian territories and provinces. It not only handles the CRA Tax Collection but also oversees the payroll tax collection of all companies in Canada. It also supervises many tax-related areas, such as CPP and EI administration. It also works like the tax agencies of many other countries. This agency has the power to use lots of ways for collecting taxes and taking actions against the delinquent taxpayers.

Lots of people face tax problems. It is essential to become well-informed about all the perspectives prior to dealing with tax collection issues with the CRA Tax Collection. A large number of people are very much conscious about the consequences of paying tax after due date. They are aware about the heavy punishments and interests as per the rules of CRA Tax Collection. On the other hand, lots of people are not so much responsive to the large interests on the tax charged by the CRA Tax Collection.  The amounts of the penalties and interests are always bigger for the repeat offenders.

Additionally,  the interest charged by the CRA Tax Collection is higher than the bank rate of interest and it is increased daily in compound basis. So, the people who do not pay their taxes for a few years use to see that a large amount of their total tax debit is made up of interests and penalties. As the interest is compounded daily, it rolls non-stop for years.

Now-a-days, the unfiled tax problem of business owners or individuals are increasing day by day. Because, most of them think that they will not be able to pay the tax owing. In fact, it is one of the main causes for not filing taxes in time. As a result, they have to pay a big amount as penalty charged by the CRA Tax Collection.

Though the CRA Tax Collection has alert the people, even the poorer who have missed to file their taxes on time, they can be charged criminally for this occurrence.  They might get guilty in the court of justice for delaying to file taxes.

So, it is better to take the advice of tax consultant for avoiding such a condition. Because, the experienced tax consultant only can help you to take the necessary step for avoiding tax problem or minimizing the tax penalties charged by the CRA Tax Collection.

A consultant only can provide to take proper steps for avoiding tax problems which are related to paying tax effectively. You can take the advice without any hesitation because, they can offer you free consultancy.

CRA is the central authority in Canada responsible for the collection of taxes from eligible individuals and entities. Although every taxpayer is required to file and pay his tax by a specified date however in negligence of this duty, the CRA takes it upon itself and takes actions towards CRA tax collection.

The first step taken by CRA tax collection is initial assessment of the owed taxes for a taxpayer and asks the taxpayer to pay the specific amount. If the tax amount is not paid within a month?s time or within 30 days the taxpayer will be called by the CRA agent and asked for the outstanding tax amount to be paid. Again time will be given to the taxpayer to pay his or her tax owing in full or at last reach an arrangement with the CRA regarding tax payment; however in wake of failure of doing so a final notice is issued by CRA to the taxpayer before it initiates any CRA tax collection method.

The CRA will finally assign a 90 day period to the taxpayer to pay the amount or face legal collection actions against him or her. These legal actions can include

–  Income Garnishments ? this will allow CRA to take over a set amount from the taxpayer?s income to retrieve the tax amount. Remember the CRA does not need a court order to garnish the wages or income of a taxpayer who owes taxes to CRA. CRA will only notify the taxpayer?s employer and start garnishing the taxpayer?s account. This is often the initial CRA tax collection method applied on a tax defaulter.

–  Seizure of bank account ? Your bank account will be seized until the entire amount of the tax is paid.

–  Property or home tax liens ? Tax liens are basically claims made by CRA on the property or home of the taxpayer. The CRA can implement a tax lien over any individual who owes CRA any tax owing as a form of CRA tax collection.

Tax liens once placed will rob you off the property rights and all rights will be placed in the hand of CRA until an agreement is decided upon CRA and the taxpayer. The CRA advises and informs any individual about the tax lien once it is registered.

Tax lien method of CRA tax collection does not exactly rob off the title of the property from the taxpayer rather it only prevents the taxpayer from refinancing or selling the property until the due taxes are paid in full. Although CRA lien over a taxpayer?s home is a very serious CRA tax collection method however it takes months even years of prior notice to pay before it actually happens.

Anyone who finds themselves stuck in such a situation can immediately contact Tax SOS for instant help and solution of the problem. Tax SOS can help you in devising a payment plan in wake of warding off the specific CRA tax collection method and complete all required documentation and requirement to avoid any legal action to be taken. Also Tax SOS can help individuals in case a tax lien has been placed on the property of any taxpayer and design a perfect possible solution to this problem.

Summary

CRA being a tax collection authority has rights to collect all due taxes and if not paid by the taxpayer even after repeated notices and attempts of recovery by CRA, it has the right to impose CRA tax collection methods on the taxpayer which can range between garnishments to property liens and even legal prosecution. Acquiring tax experts help in such a case is the best way to escape CRA tax collection methods.

Whoever said that the only certainties in life were death and taxes was right ? there is no way to avoid either of them. It is easy to worry about both and while it is hard to avoid dealing with death it is possible to get help when it comes to dealing with CRA tax collection. When the bill comes in, it is important that it is dealt with right away, even if there are concerns that it is going to be difficult to pay. Avoidance is futile, as the taxes will not disappear, but will become more of a problem if ignored.

CRA tax collection officials can become involved if there is not an arrangement to pay put in place, and enforcement action can be started to ensure that the tax problem is dealt with. With some types of tax owing there are minor actions taken, but with CRA tax collection, the main aim is to get the money regardless of the position this leaves you in. Officials can carry out a number of actions, including taking your salary, emptying your bank account and on occasions they will put a lien on your house. Items can be taken and sold in order to satisfy your tax owing.

There are a number of ways to deal with CRA tax collection and while it is possible to deal with the officers alone it is not the best way to go. They will know the law inside and out, and while many will only be totally honest with you, there are others who will only want payment and may tell you things that are misleading to say the least. There are some who will come to your house as part of the CRA tax collection process, and they will be determined to make you give them as much money as possible. They are covered by the law, but will often imply or even state that they have far greater powers than they actually do have.

Once you are aware that you have a large tax bill, you need to contact a professional and find out what rights you have and also how they can help you deal with CRA tax collection. In some cases it will be possible to put in a challenge to the bill that has been presented and this will be done by putting in a Notice of Objection. While this will not always be possible, and this will be when the bill presented is accurate, then there will be advice given regarding a payment plan.

This will be something that you can afford as well as something that the court is happy with. It is reassuring to know that tax collection by CRA can take place without your belonging being confiscated or wages taken. It will be worrying to see a high bill but most of the time it will be dealt with over time.

When the CRA is notified that the collection of a tax has become overdue, they may then file a tax lien. This lien may be attached to the taxpayer?s property. This lien can limit the taxpayer?s rights to has to his or her property. This is applicable to real estate, personal effects or bank accounts. CRA collection in Toronto or in any other cities in Canada could enforce a tax levy which could involve seizure of property, bank accounts and even the taxpayer?s wages. The CRA has the right to garnish half the taxpayer’s income from the employer and up to one hundred per cent of any additional sources of income that the taxpayer may have.

People who need help with their tax issues have several options. One of them is to employ the services of a tax attorney or law firm. Another option is to get the help of certified public accountant. Tax lawyers are good negotiators and the tax accountants are knowledgeable in all tax matters. There are certain firms that provide to the Canadian taxpayers full expertise of both professions while offering the additional option of tax representatives. These tax representatives are people who have got prior experience working in the capacity of CRAtax agents.

This combination of expertise can help the taxpayers in most cases involving  CRA collection in Toronto  or in any other cities in Canada. They may also be able to get the total tax amount reduced for the taxpayer. They have the capacity to dispute all unfair assessments and negotiate a favorable  Toronto CRA tax payment plan.

The CRA has been given the responsibility of all collection activities by integrating the collections for the government. These activities were previously handled by Human Resources and Social Development Canada.  This includes all tax owing that have been incurred through Canada Student Loans, Old Age Security, Canada Pension Plan, Employment Programs and Employment Insurance.

The CRA was chosen for the collections function because of its previous experience collecting a whole range of taxes for the federal government and the provinces. It also collected premiums for many social programs. The CRAdraws on its current infrastructure for its CRA collection. It brings expertise and a capacity to support the administration while integrating the collection operations of other departments.

CRA Collection in Toronto or other cities involves both automated and manual procedures to retrieve outstanding tax liabilities. Some of the procedures the CRA uses are letters generated by computer, field visits, telephone calls and legal actions.  CRA collection in Toronto  or other cities act through the Revenue Enforcement Management Information Tracking System. This is a national call center for collections. It is placed at eight locations and collects two account pools nationally; they are general sales tax and personal tax. The complexity and the size of the outstanding tax amount will influence the collection mode that is likely to be used by the CRA.

The Canada Revenue Agency collects various types of taxes. These taxes are income tax, GST/HST, and payroll taxes. The jurisdiction of  CRA collection  does not include provincial taxes such as gas taxes, property, or municipal taxes. CRA has contractual arrangements with certain provinces to help in collecting their provincial program outstanding dues. An example of such an arrangement would be when CRA will use refunds on personal income tax as adjustments against outstanding taxes to benefits programs of selected provinces at the request of that particular province.

CRA collection’s responsibilities

CRA collection  is responsible for most individual income tax brackets in Canada with the exception of those residing in the Province of Quebec and Alberta. CRA administers the tax collection procedures from the majority of provincial corporations in the country.

CRA collection  is also responsible for the Goods and Services Tax in all the provinces with the exception of Quebec as Revenue Quebec manages the collection on its own. It also collects the Sales Tax and the GST on behalf of CRA. When it was introduced about twenty-two years ago, the GST was fixed at 7% as add on to the value of goods and services, but it was reduced to 5% a few years ago.

In few provinces, the Goods and Services Tax has been transformed into the Harmonised Sales Tax. These provinces are British Columbia, Newfoundland, Labrador, Nova Scotia, and Ontario. The HST blends both the GST and the provincial sales tax into one category. HST is administered by CRA.

The expectations of CRA collection

CRA collection  practices make it clear to the taxpayers that they have to honor the payment of taxes upon receipt of the Notice of Assessment by the thirtieth of April of a calendar year for the previous year?s assessment.  CRA collection  authorities expect all taxpayers to file their income tax returns and settle any outstanding balances that have been carried forward from the previous years.

To ensure fair practices and equitable allowance to all the tax collectors under the self-assessment system, CRA collection uses stringent measures to make sure that the taxes are paid on time. CRA collection tends to take a firm but effective approach to collect all outstanding account from the collectors who have not paid their taxes. Every reasonable effort is put in to enforce the collection deadlines.

The Procedure of CRA collection

In situations where the outstanding balances are not cleared within a month?s period from the date when the Notice of Assessment has been issued, a provision is made to issue a second notice request for the owed balance by means of telephone contact. If the balance still remains outstanding and there is no arrangement or discussion about payment of the tax dues, then a final notice is issued to the collector. If there is no sign of the payment coming in within ninety days from the date of the Notice of Assessment, then legal action is pursued by the CRA collection.

The taxpayer?s income will be garnished. This means that the CRA collection agencies may intercept funds receivable by the concerned taxpayer and in certain cases, the sheriff of the province may be directed to seize and liquidate the personal assets of the defaulters. The final CRA collection will include the interest charges on the balances that have remained unpaid.

If you have tax debts issues and have CRA collection agent going after you, delay no further, ask experienced tax consultants in Tax SOS to help at 1-877-982-9767.

When tax payers are seeking answers to the problem of tax bills which are outstanding, CRA (Canada Revenue Agency) allows them to make deals detailing a schedule of the tax payment plan. The CRA will always be willing to accept a reasonable monthly installment tax payment plan.

In the absence of a tax payment plan, there is a possibility that the taxpayers will have to be ready to face CRA garnishments on their wages. There are many Canadians who have their wages garnished every year by CRA. These garnishments take place when a tax is owed and there is no submission of a tax payment plan to the CRA. The wage garnishments will also occur if CRA gets your tax situation assessed through a notional assessment and provides evidence that the tax will not be paid within the financial year.

The CRA does not need to get a court order to execute garnishments on your wages unlike other creditors. Salary garnishments are directives to the employer to hand over a certain percentage of the taxpayer?s wages to the CRA. This can be done without the need for informing the taxpayer. The percentage limit is generally about a maximum of fifty per cent of the wages. This could have an impact also on other sources of income such as rental or sub-contractor?s earnings. The additional sources could be garnished in full amounts.

This is not a healthy situation for tax defaulters as apart from causing further financial hardship, it can result in embarrassment in both personal and professional lives. When your employer is served CRA garnishments, it is humiliating and reduces your reliability even in the eyes of your employer.

The Consumer Credit Protection Act has come out with a protection clause for the defaulter where he or she cannot be dismissed from employment on account of the wages being garnished. The employer has a right to terminate employment if the garnishment has been done more than once.

The tax defaulters could take the help of tax consultants to get a reduction in the CRA garnishments and sometimes they may be successful in getting them removed totally. The complete solution lies in coming across with a tax payment plan and not in bits of evasion. It is wiser for the defaulter to get in touch with the tax consultants as they will be able to negotiate with the CRA on your behalf and work out a tax payment plan that may be reasonable and fair and one that is within your financial capabilities.

You may be able to negotiate with the CRA on a personal basis, but a good tax consultant will be able to contribute out of his vast experiences in working out negotiations with the CRA agents. The tax consultants are invariably successful in working out a tax payment plan that includes arrangements of monthly payments of lower value. They may be able to work such arrangements out with lower interest charges and also without any additional penalties.

Call tax consultant team at Tax SOS team right away if you have received notice from CRA about potential legal collection actions at 1-877-982-9767.

The pay-as-you-go tax system has been adopted by a number of countries including Canada, whereby the taxpayers are required by law to pay their tax as they earn an income. Individuals who do not make their tax payments during the year are obligated to make those payments in full on or before the tax deadline that has been specified by the Canadian Revenue Agency or CRA, as it?s commonly known.

When does a CRA collection action start

In case of non-payment, the CRA has the right to take enforcement action and they do not have to give a warning to the taxpayer or get a court order for doing so. This is to ensure the complete collection of tax for the government.

If individuals are unable to pay off their taxes, the CRA will still collect their taxes either voluntarily or involuntarily, whichever option is necessary. They have specific procedures that they follow for the purpose of collection. Staffers undertake this procedure by first informing the taxpayers about the amount of tax that?s owed by them. They also offer a certain amount of time to taxpayers for setting up a payment plan. If the taxpayers do not take any action, the CRA collection procedure dictates that the assets or funds of the taxpayer will be seized.

CRA collection: payment plan option 

If the taxpayer makes an effort in good faith, the Canadian Revenue Agency will work out a payment plan for them. However, each payment should be made on time or else taxpayers will have to face penalties that can be very severe. If a lump sum is enough to settle the amount, individuals have the option of mailing a check or visit the local CRA office. If a payment plan has been chosen, individuals will be required to pay a specific amount on a monthly basis for satisfying their tax liabilities. Interest will start accruing if the payment is not made on the deadline.

Strict penalties are part of the CRA collection procedure in the scenario where tax is not paid by people in a timely manner and they are unable to pay it. A notice will be sent by the CRA through mail for informing the taxpayer that they intend to collect the tax owed by placing a levy on the individual. The amount owed will also be mentioned on the notice and a short response time is given to individuals before any action is taken. A levy will be placed on any wages or income earned if a response isn?t made to the CRA.

The employer will be contacted by the CRA and a withdrawal of a significant amount will be made from the wage of the taxpayer. The tax deduction will usually be 30% of the paycheck because the CRA is aware that financial survival burden may result otherwise. If the taxes cannot be deducted from the income because there isn?t any, the levy will be placed by the CRA on the home or other assets owned by the individuals. The property and vehicle is possessed and auctioned off in the CRA collection process for clearing the tax dues of the individual.