Tax Debt

Tax Debt & CRA Collections: Protect Your Finances

Owing tax debt to the Canada Revenue Agency (CRA) can be overwhelming, as the CRA has extensive legal authority to collect unpaid taxes. At KR Law Firm, we provide expert legal guidance to help individuals and businesses resolve tax debt issues efficiently while safeguarding their financial stability.

Understanding CRA Collection Powers

The CRA has significant powers to collect outstanding tax debts, including:

• Bank Account Seizures: The CRA can freeze and seize funds from your bank account.
• Wage Garnishments: A portion of your salary may be withheld and redirected to the CRA.
• Asset Seizure & Liens: The CRA can seize and sell property to recover unpaid taxes.
• Requirement to Pay Notices: Third parties who owe you money (e.g., clients, tenants) may be ordered to pay the CRA directly.

For more details on CRA collection methods, visit the CRA Debt Collections Guide.

Tax Debt Statute of Limitations

The CRA has a statute of limitations on tax debt collection:

• Six years: Limitations for most tax debts owed by individuals.
• Ten years: Limitations for corporate tax debt and payroll deductions.

However, certain actions—such as partial payments—can reset the limitations period, extending the CRA’s ability to collect indefinitely.

How We Help Resolve Your CRA Tax Debt

1. Comprehensive Tax Debt Assessment
Our legal team conducts a thorough review of your tax debt, identifying opportunities to:

• Determine if the CRA’s collection actions are lawful.
• Assess eligibility for penalty and interest relief.
• Evaluate tax repayment options and legal defenses.

2. Negotiating with the CRA
We handle all interactions with the CRA, negotiating favorable resolutions such as:

• Payment Plans: Structured payment arrangements based on financial ability.
• Penalty & Interest Relief: Requests to reduce or waive additional charges.
• Taxpayer Relief Provisions: Legal avenues to reduce tax liabilities.

Preventing Future CRA Tax Debt Issues

Beyond immediate tax debt relief, we provide long-term solutions, including:

• Ensuring proper tax compliance to prevent future collections.
• Advising on corporate tax planning to manage liabilities.
• Helping businesses and individuals maintain financial stability.

Why Choose KR Law Firm for Tax Debt Resolution?

• Experienced Tax Law Professionals: Effective strategies for resolving CRA collections.
• Strong Negotiation Skills: Advocating for reduced penalties and favorable settlements.
• Full Legal Representation: From debt negotiations to legal appeals.
• Personalized Financial Solutions: Tailored plans to regain financial stability.

Struggling with CRA Tax Debt? Contact Us Today.

If you are facing aggressive CRA collection actions, take immediate action. Book a consultation with KR Law Firm to explore your tax debt relief options.