Facts you should know…

• The CRA can garnish up to 25% of a taxpayer’s gross salary every pay period
• They do not need a court order to obtain a garnishment
• They will contact your employer to enact these deductions
• There is help out there; seek professional advice and call us today.

Overview

The CRA has the ability to garnish a taxpayer’s wages if they have an outstanding debt associated with their account. Typically, this mode of securing a debt follows numerous attempts at correspondence in the form of telephone calls and formal letters. The CRA does not need a court order to enforce this assessment, as they are a government entity, and beyond many of the restrictions afforded to the taxpayer by Title III of the Consumer Credit Protection Act (CCPA). This allows them to deduct between 20-25% of the taxpayer’s gross paycheck, which is beyond the normal 15% afforded to private businesses. Moreover, the CRA must contact the individual’s employer to enact the deduction, which can ruin employee-employer relations.

In sum, a wage garnishment can cripple an individual’s financial ability to provide basic necessities, and can leave them in poor standing with their employer, so don’t wait another moment to seek guidance on these issues today.

You have options…

If you have not been served a notice for garnishment yet, it is not too late to prevent such measures from taking place. Call us today and speak with one of our many tax experts who will guide you through this process. Conversely, if you have been served a notice for garnishment it is important to seek representation immediately in order to help negotiate a seizure of such actions on your behalf.

Don’t go at it alone; seek professional guidance that will serve your best interests—not the CRA’s.