Paying Tax on a CRA Tax Payment Plan
Posted by support2 March 05 2014
Tagged Under : CRA tax, cra tax payment plan, tax payment plan
Like most people, it is not likely that you plan to avoid paying tax, but sometimes circumstances get in the way and you are not able to pay what you owe. There can be many reasons why there are problems such as business problems, or simply a disagreement regarding how much you should pay. Regardless of the reason, you should be entitled to a CRA tax payment plan even if the CRA is trying to encourage you to pay it all off at once.
Once the CRA contact you, it may at first seem that they are on your side and want to help you get through this. You could well be offered the chance of a short term payment plan and all you need to do is fill in a form that gives all the details of your finances. Once this has been done it may be difficult to get the same level of support concerning the CRA tax payment plan.
Once you are in this position it is unlikely that you are going to be able to negotiate your way out of it. The fact is that in many cases you will owe the money and the CRA has one aim only and that is to get it. It is at times like this that you need the help of someone fully trained in regards to tax issues to help you get the CRA tax payment plan that is going to get you out of the mess that you find yourself in.
The main reason not to hand over all your details is that there could be consequences if you have other Owings ? even the sort that many other people have such as credit cards and loans. When a CRA tax payment plan is set up, the CRA will consider that sort of owing to be of less importance than the owing to them and will want all the money that has been used to make your repayments to be diverted to them. Clearly this is not good for you and could lead to you defaulting on your owing and ending up with a trashed credit rating.
If it is agreed that you can have a CRA tax payment plan, you will need to disclose all funds and this could include money set aside for a rainy day or your kids’ university funds. That is money that you will not want to take into account and that is why someone who is an expert when it comes to tax should be employed to get you the best deal.
The money you pay someone else to set up your CRA tax payment plan will be money well spent, as they can help you avoid liens and salary garnishment meaning that this is kept between you, them and the taxman, not your employer.
Once the CRA tax payment plan is up and running, it is hard to stop. This is why you should get expert help as they will make sure what you pay is what you can afford. They may also be able to recommend other help that you are entitled to.