Category: Finance

Tax Time! Faced With a Huge Tax Debt?

It’s tax time again for Canadians, that annual spring ritual we all dislike, but must do.  Apr. 30th is the deadline for submission to avoid late penalties.

Few Canadians are aware of a little-known fact:  income tax debt can be  included in a Consumer Proposal or bankruptcy, just like any other unsecured debt.  We have many clients this time of year who are under a tremendous tax burden that they cannot manage (either income tax or HST/Director’s Liability from their businesses).  Often, an insolvency is the only way for them to get a fresh start and move on with their lives, and get the CRA (Canada Revenue Agency) off their backs.

CRA debt can be crippling, especially if taxes have not been filed for a long time or are related to a limited company (corporation).  A Consumer Proposal may be the answer for you if you are faced with such a situation but want to avoid a bankruptcy.  A proposal allows you to keep control of your assets and make as much income as you can.

Give us a call for free advice!  It doesn’t hurt to talk to a professional.