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.