Tax Debt Relief: Is It a Possibility?

Can I make a deal with Revenue Canada?

Looking for a tax debt solution, people are often asking: Is tax debt relief a possibility in my case? Can I make a deal with Revenue Canada for the taxes I owe?

Yes! It is possible to make a deal with Revenue Canada (now known as the Canada Customs and Revenue Agency - CCRA). Here is how.

Your tax debt solution: negotiate payment terms

If you owe Revenue Canada and cannot pay the balance in full, your tax debt solution might be negotiating payment terms with CCRA. Contact your nearest Revenue Canada office. Explain your circumstances, and negotiate a payment plan. For example, if you owe $1,000, you may offer to pay $100 per month for the next ten months. It will be up to Revenue Canada to decide if they will accept your offer, or take further action against you to collect the taxes owing.

However, there are two points you should remember:

First, whatever deal Revenue Canada agrees to, you will continue to be charged penalties and interest until your debt is paid in full.

Second, if you cannot reach an agreement with Revenue Canada, they have the power to with-hold child tax credits and GST credits until your debt is paid. They also have the power to garnish your wages and take funds from your bank account, so treat this debt seriously.

Will Revenue Canada settle for less than the amount owing?

As a general rule, Revenue Canada will not accept less than the full amount owing. Their logic is simple. If they allow you to pay less than the full amount owing, they may be forced to make the same deal with everyone else. This further implies that tax debt relief is not an option, not a possible tax debt solution; However, there is a way to make a deal with Revenue Canada for less than the full amount owing. For more details, please visit our Tax Debt Settlement page.