General Questions

What services do you offer?

Best Canadian Tax is a tax resolution company that offers the following services:

Why should I use your services over enlisting a tax attorney or chartered accountant?

Tax lawyers and chartered accountants are very good at their respective functions within the realm of taxes, but this field is large, and their expertise only goes so far. BCT specializes in the narrow niche of the tax field that deals with collections and enforcement, which is why we are able to serve clients who owe an outstanding debt to the CRA.

Do I need to physically come to an office location to use your services ?

Although we have locations all across Canada, modern technology has allowed us the ability to take care of all of our clients’ needs over phone, fax, and email. So don’t worry if you are far from one of our many locations—you can still call.

How long will it take for you to contact the CRA on my behalf?

Once a client comes on board with BCT, we ensure contact with the CRA within 24hrs.

How can I reach you?

The best way to reach us is by calling: 1-888-830-3683. If you are unable to call us immediately, fill out our contact form and we will be in touch at your earliest convenience.

Questions about the CRA

What is the CRA?

The CRA, or Canadian Revenue Agency, is a federal agency that administers tax laws at both the federal and provincial level. The CRA is charged with tracking income statements and enforcing audits/collections for outstanding tax related debts.

What types of collection actions do they use?

Since the CRA is a government agency they have much more leeway in collecting outstanding debts than private companies. The CRA has numerous tactics which are listed by increasing severity; they may start with a lien (1), move to garnishments (2) or bank levies (3), and finally they may even seize (4) a taxpayer’s property.

Will they put me in jail for an outstanding tax debt?

The CRA has the ability to place a taxpayer in jail if they are found guilty of either tax-related fraud or evasion within Canadian tax court. Evasion constitutes not filing one’s taxes, while fraud refers to the inaccurate representation of facts on a one’s filings and/or the deliberate non-payment of one’s taxes.

How do I stop their incessant phone calls and letters?

The CRA attempts to contact a taxpayer via phone call or letters in order to notify them of collection actions for an outstanding debt. It is best to assess the letters and voicemails in order to gain any information about collection actions, and then call a tax expert to guide you through the process of dealing with your debt.

Wage Garnishment Questions

What is a “wage garnishment”?

A wage garnishment is an automatic deduction from a taxpayer’s paycheck in order to service an outstanding debt. It is important to note that the CRA does not need a formal court order to invoke this right.

Why are my wages being garnished?

The CRA garnishes a taxpayer’s paycheck in order to obtain payment on an outstanding debt. Usually, this enforcement activity comes after they have attempted to elicit payment through other means such as a lien, phone calls, or letters. If you have been served a notice of garnishment it is not too late to enter into negotiations with the CRA via an experienced tax representative.

How much can the CRA deduct from my wages?

The CRA can garnish up to 25% of the gross income on a taxpayer’s paycheck every pay period. This is more than the normal 15% allotted for private consumer debts.

How do I get a wage garnishment lifted?

In order to get a garnishment lifted, it is important to seek representation like BCT, who will ensure your financial needs are congruent with the demands of the CRA. This process entails filing any unfiled returns, as well as negotiating a payment arrangement through a comprehensive presentation of the client’s financials.

Will my employer be notified about my wage garnishment?

Yes, the CRA must contact your employer in order to enforce a garnishment. Although the employer cannot fire an employee for having a garnishment, it certainly affects their relationship adversely.

Bank Levy Questions

What is a “bank levy?”

A bank levy is the seizure of a taxpayer’s funds via their bank accounts in order to acquire payment on an outstanding debt.

What type of accounts can the CRA levy?

The CRA has the ability to seize funds from, but not limited to, a taxpayer’s personal, business, and retirement accounts.

I have received a notice of intent to levy, what happens next?

Once a taxpayer has received a “notice of intent to levy” the CRA usually waits 30 days before contacting their bank directly. After the 30 days, the bank will freeze the taxpayer’s bank accounts. Once a bank has frozen the taxpayer’s account, the CRA can withdraw these funds within 24 hrs.

How much can the CRA take from my bank account?

The CRA has the ability to withdraw the full amount of the taxpayer’s outstanding debt from their bank account. If the taxpayer does not have enough funds to service their entire debt, the CRA can take whatever funds are available and place it towards servicing their outstanding debt.

How do I get a bank levy lifted?

In order to get a bank levy lifted, the taxpayer must file their outstanding tax returns, as well as enter negotiations to service their debt in a timely manner. It is always important to seek experienced representation prior to contacting the CRA, as the process can often be riddled with jargon and clauses that are beyond the scope of the average taxpayer knowledge.

Payment Plan Questions

What is a payment arrangement?

A CRA payment arrangement is an agreement to pay an outstanding debt in monthly installments. This is applicable when the total amount of debt is unable to be paid in full immediately.

How much will I pay every month to the CRA?

The amount a taxpayer must pay monthly to the CRA varies depending on their financial circumstances. It is important to note that the CRA’s main goal is to acquire all outstanding debts as quickly as possible, which can often cripple the taxpayer’s financial stability. For this reason, it is important to seek representation that will take into account your financial obligations prior to agreeing upon a monthly payment arrangement.

How long does a payment arrangement last?

A payment arrangement lasts until the entirety of the taxpayer’s debt is paid to the CRA, which largely depends upon their monthly payment amount.

Do interest and penalties still accrue on my debt during the payment plan period?

Yes, the penalties and interest on a taxpayer’s account continues to accrue over the course of a payment agreement. The penalties and interest can be waived if the taxpayer meets certain criteria outlined in the taxpayer relief provision of the Income Tax Act. For more information on how to waive penalties and/or interest look at our our Taxpayer Relief Request page.

Taxpayer Relief Questions

What is a “taxpayer relief request?”

This is a request for the waiving or cancelling of any penalties and/or interest from the taxpayer’s debt, per provision IC07-1 of the Income Tax Act.

How much of my penalties and interest will be eliminated?

The amount of penalties/interest that can be waived or cancelled for every individual is different, as their circumstances differ. It Is reasonable to assume though, that the amount of interest and penalties on a taxpayer’s debt is around 5% compounded daily. In order to get more information on penalties and interest, call us today or visit our our Taxpayer Relief Request page.

What is “reasonable cause criteria?”

Reasonable cause criteria refers to certain circumstances, which if met, can allow the taxpayer to waive or cancel any penalties and/or interest related to their debt. These circumstances include things like fire, floods, death in the family, and medical emergencies.

Where can I send in a taxpayer relief request?

A taxpayer relief request must be sent to certain CRA intake centres depending on the Province in which the taxpayer resides. Listed below are the intake centres by Province.

Insolvency Consulting Questions

What is “insolvency?”

Insolvency is synonymous to a personal bankruptcy, in which the debtor’s assets are seized and reallocated in order to pay off their creditors.

Is filing for insolvency the only way to deal with my CRA tax debt?

No, filing for insolvency is not the only way out of your CRA debt. The CRA is a creditor who, like all other creditors, can be negotiated with in order to resolve outstanding financial obligations.

Does insolvency affect my credit rating?

Yes, entering into insolvency ruins a taxpayer’s credit rating and prevents them from the future ability to acquire loans and property. The taxpayer will receive the worst possible credit score—an R9. Depending on the taxpayer’s circumstances, this score will remain on their credit report for 7-14 years.

How can I avoid insolvency?

The first step to avoiding insolvency is contacting a representative who will work with your creditors and negotiate alternatives. Remember, the CRA is a creditor who has the ability to take enforcement actions against a debtor (taxpayer). Don’t wait for them to take action—make the first move.