Spring is fast approaching, and that means the snow may still be holding on but it is getting weaker and weaker. With winter on the way out, that means the tax season is just around the corner. However, if you are currently sitting on a tax debt, you may be months into your tax season, dealing with CRA collections on a regular basis.

If you owe the Canada Revenue Agency, be it from the 2014 tax year or earlier, you are likely well aware of the fact that these agents do not give up. CRA collection agents are relentless, and will try at every turn to obtain any money they believe is owed to them. This may involve calling you at home, bombarding you with official letters, or even calling you at work, which is never good for business!

Can’t these phone calls be stopped? There is a Taxpayer Bill of Rights that addresses harassment, but as long as agents are following it they can still use tactics that are embarrassing and may feel harassing (even if they are not actually considered harassment). The only real way to stop the phone calls is to deal with the debt.

So, what are your options?

1. Pay your debt in full. We hope that if this were an option you would have already taken it, since interest accrues at an alarming rate on a CRA debt. If you’ve been holding out in the hopes that the debt will just disappear rather than dipping into the savings account, we strongly urge you to reconsider.
2. Get a loan to pay the debt. If you only owe a small amount, this can work, but often tax debts are massive, in which case an affordable monthly payment may be impossible.
3. Refinance your house to pay the debt. Many people do this, as it is a viable option, usually with lower interest, but you need to do it before a lien is placed on the home (a very common enforcement action taken by the CRA).
4. Consumer proposal. If refinancing is not an option, and a loan doesn’t make sense, you may want to consider a consumer proposal to get rid of the debt. This will mean one payment, a stop to interest, a stop to collections and sometimes an overall reduction of the debt.

So what is the best option for you? If you want to stop CRA collections, the best option depends on your unique circumstances, and this is best determined after a consultation with a financial specialist. Someone with the expertise and experience working with CRA collections and tax debts can help you determine the best route for success.

At DebtCare, we can help you find that route. Call us today at 1-888-890-0888.