The Canada Revenue Agency (CRA) has always had a reputation for strict and aggressive collection behaviour. When money is owed, agents will try their hardest to retrieve it. This usually results in extreme stress on the taxpayer and enforcement action that can wreak havoc on their financial stability. What’s worse, those tactics seem to be getting more and more aggressive. If you’ve got CRA tax debt collectors calling, read on.

When you receive an assessment, perhaps your initial thought is to call and speak to the CRA directly. When you try to negotiate with the CRA directly, before they even speak with you they will ask you to complete a financial disclosure form – this is a very dangerous form. They will want disclosure of everything from your bank account to your employer, to assets and income and expenses. Some of this information they may already have, or have the resources to obtain, but it is always easiest just to ask you.

Remember, the goal of each and every agent is to get what is owed, as soon as possible. They are not interested in negotiating a long, drawn-out payment arrangement. Perhaps you assume that they will allow a realistic schedule based on your income. Oh, they will, but it will be based solely on your income – requirements to other creditors will not be considered, and your debt to the CRA will be made the top priority.

Once this has happened, you will have little recourse. Since you’ve disclosed all of your information – where you bank, work, live, etc. – they can initiate enforcement action against you. This may include a frozen bank account, wage garnishment, even a lien on your home. Unlike other creditors, no court order is needed for CRA enforcement action, and once imposed it can be very difficult to remove.

Our best advice is this: if you have received a notice of assessment/re-assessment informing you of a tax debt, don’t go directly to the CRA. You should consider speaking with a financial specialist to find out about all of the available options for getting rid of the debt before the CRA comes calling.

If the CRA has already taken enforcement action, there are federal government programs that can protect your bank account and income. Speaking with a financial specialist, again, is the best approach here. We can help you take advantage of those programs and get rid of the tax debt once and for all.

Protect yourself and your assets. At DebtCare, we can help you get rid of a CRA tax debt and help you retain your financial footing. Call us today at 1-888-890-0888.