Pay Your Canadian Taxes With A Tax Payment Arrangement
Posted by support2 March 01 2014
Tagged Under : tax payment, tax payment arrangement
There will be times when it becomes a strain to pay your taxes and if this happens, it is important you deal with it right away. Ignoring the problem will just make it a bigger problem, but by speaking up an explaining what is going on, there is the chance to make a tax payment arrangement. You must be able to prove that you are not in a position to pay the tax and not just that you don?t want to pay, but once that has been confirmed, there will be people happy to allow a plan to be entered into.
Some people try to sort the problems out themselves without a tax payment arrangement, but this does not always work out well as it can be stressful, and often they just agree to a figure to be paid each month and do not consider if they will be able to raise this amount in a monthly basis. When planning to enter a tax payment arrangement it will be best to seek the advice of a professional as they will explain what you should consider as a sensible amount for living expenses. As it is easy to contact the authorities, too many people have set up an unreasonable plan without getting the right advice. If this happens and it is then impossible to make the payments the consequences will be worse and it could end up that the CRA will put a lien on your home.
Once the tax payment arrangement has been set up, you will find that there are so many ways to pay. There is a secure section on the CRA online site and there is a ?My Payment? section that allows payment to be made. A cheque can be sent and you could go to the tax office each month and make the payment in person. If you have telephone banking you can also carry it out that way. In fairness to the CRA they make it easy for you to pay once the tax payment arrangement has been established.
There are a number of reasons why you should not go through this process alone. It is not a quick and easy process, and it can be worrying having to deal with such an important organisation. The criteria set out for getting a tax payment arrangement is complex and where possible the CRA will want full payment. There will be interest charged, and while it is worth bearing in mind that high payments could cut out the interest paid on this owing, it could lead to others that will cost more. At present the compounded daily interest rate is 5%.
It is important that advice is sought as soon as you realise that there will be a problem. If legal proceedings have been started against you it will be hard to stop the process. Even if it is stopped it may prevent you getting such a good deal on the tax payment arrangement as you would have got if you had made contact earlier. It is bound to be a worrying time, but there are ways to enter a tax payment arrangement and there are people to help you.