Consumer Proposal & Revenue Canada Debt what you need to know.
Do you have outstanding tax debt with Revenue Canada, being charged penalty and interest? Does CRA allow liabilities to be included in my consumer proposal?
CRA will only allow liabilities up until the end of the calendar year, before the proposal. Example filing a proposal in September 2014. will include tax debt, interest and penalties up to and including 2013.
Revenue Canada is the most common creditor and tax debt is the regularly the highest liability on consumer proposals and bankruptcy filings. Revenue Canada tax debt should be taken extremely serious, CRA has and will seize assets, including your home without protection from trustee in bankruptcy.If you are considering delaying filing your consumer proposal to include the current tax year, understand that there is an exception to that rule : If the debtor files a provisional tax return at the time of filing the proposal the tax owing is shown as a liability. In other words, if there are clauses reflecting the impending tax liablity in the consumer proposal document, the CRA will allow the pre-proposal liability to be included in the proposal. Consumer proposal & Revenue Canada liabilities are viable solutions for debt reduction.
Designed for high-income professionals or self-employed individuals that are no longer operating their business.
Contact the Government of Canada for more debt reduction solutions or information on consumer proposals Or please fill out our free consumer proposal evaluation form.
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