Owing a debt to the Canada Revenue Agency (CRA) is unlike any other financial obligation. The CRA has broad and powerful legal authority to collect outstanding taxes, making it one of the most aggressive creditors. At KR Law Firm, we provide strategic guidance and expert representation to help individuals and businesses manage and resolve their tax debt effectively, ensuring compliance with the law while protecting financial stability.

Understanding CRA Collection Powers

The CRA’s authority to collect tax debts includes measures such as seizing funds from bank accounts, garnishing wages, and seizing or selling personal assets—all without requiring a court order. Additionally, the CRA can issue a “requirement to pay” to third parties who owe you money, instructing them to remit those funds directly to the CRA. These extensive powers underscore the importance of addressing tax debts promptly and strategically.

Statute of Limitations on Tax Debt

The CRA is subject to a statute of limitations for collecting tax debts, typically six or ten years, depending on the type of debt. However, the CRA can reset these limitation periods through various actions, effectively extending the time it has to collect. This makes it crucial to remain vigilant when dealing with the CRA and to seek experienced legal advice to avoid inadvertently prolonging the collection timeline.

Comprehensive Assessment and Strategy

At KR Law Firm, our process begins with a thorough assessment of your tax situation. We evaluate the amount of debt, the causes of its accumulation, and any collection actions already taken by the CRA. This detailed analysis allows us to explore all available options, including payment plans, lump-sum settlements, or offers in compromise, tailored to your specific circumstances.

Negotiating with the CRA

We represent you in all interactions with the CRA, negotiating directly with its Collections Department to achieve manageable resolutions. Our approach includes:

• • Arranging payment plans that align with your financial capacity.
  • Negotiating for penalty or interest waivers where applicable.
  • Exploring other legal remedies to reduce your tax burden.

Our expertise in tax law ensures that we advocate effectively on your behalf, securing the most favorable terms possible while protecting your rights.

Resolving tax debt is not just about immediate relief—it’s about creating sustainable solutions. At KR Law Firm, we provide guidance to help you regain financial stability and prevent future tax issues. This includes advice on maintaining compliance with tax laws and improving financial management practices.

A Trusted Partner for Tax Debt Resolution

By choosing KR Law Firm, you gain a partner dedicated to resolving your tax debt professionally and compassionately. Our strategic approach aims to alleviate the financial burden, protect your assets, and secure long-term solutions that safeguard your financial future.