Tax time has come again and many people are faced with the problem of owing Canada Revenue Agency , hundreds or thousands of dollars in income tax. Often it is a painful time of year and it can be made worse if you are already suffering with over extended credit cards or other debt. Avoiding tax debt can be very costly, interest and penalties pile up quickly, as well Revenue Canada can and has the authority to seize assets, like your home. Ignoring and not filing your 2013 income return is not an option.
Fortunately there is a solution to reduce tax debt, outstanding tax debt can be negotiated in a consumer proposal.
The key advantages of a consumer proposal
- Pay only a portion of the debt, the proposal applies to government debt CRA tax debt including GST debt.
- No interest is charged, and the monthly payment is based on your income and the ability to pay.
A consumer proposal is an offer to all of your creditors as a group, including Canada Revenue Agency, to pay only a portion of the total debt and to avoid bankruptcy.
A consumer proposal can only be made through a licensed CIRP bankruptcy trustee. Understanding your options regarding tax debt is the first step to a fresh financial future.