When there is a tax owed to the CRA, it is very likely that they are going to do all they can to collect. They have a great many ways to get the money back and one of these is CRA Income Garnishment. Many people are surprised to find out that they are going to have money taken from them as when this is the way that the money is to be returned, there is no need for the case to go to court. The good news is that it will not mean you being sued, but the bad news is that you don?t get a lot of notice when the money is about to be taken from you.
With CRA Income Garnishment, there is already an allowance in the Canada Revenue Act that allows the recovery to begin. It should not be a surprise to you to find that the money has been taken from your salary if you owe tax, as there is nothing that your employer can do to stop it happening. Once the request is made to them they have to comply.
Before CRA Income Garnishment begins, you will be made aware that there is a problem with what you have paid in the past. You will be contacted by the CRA on a few occasions and each one you receive will escalate the problem and bring you nearer to the time when you will be subject to CRA Income Garnishment. In the first instance, you will be made aware that you owe tax, and this may or may not be news to you. If it is you will be well advised to contact a firm of professionals who will be able to look into the case for you. After this you will get a second letter and this will tell you that you need to pay the full amount. If you still do not pay the amount a third letter will arrive and this will be the final notice. If the case is still not resolved, you will receive the fourth letter and this will advice that CRA Income Garnishment will soon start.
The best thing to do when the first letter arrives is to deal with the issue right away. It is possible for all your salary to be taken until the tax is repaid and clearly this is not a position that anyone would want to find themselves in. Very often it will be the case that the reason the bill is there is because it cannot be paid. A professional will be able to tell you what the options are. It is possible to have CRA Income Garnishment stopped and it is the professional who should take a good look at your situation.
Your main options to stop CRA Income Garnishment are to either get together the full amount and pay it off or if this is not possible start a tax repayment plan as this is likely to take less of your salary each month.