Question: If you owe money to Canada Revenue Agency (CRA or Revenue Canada), but you don’t fully own your home, what can they take from you? Can they seize your home, car, bank account etc.
CRA (Revenue Canada) Tax Liens and Powers of Collection
If you owe taxes, CRA (Revenue Canada) has the power to seize your bank account, put a lien on your home, and garnishee your wages.
A tax lien can be placed by the Canada Revenue Agency on private property of any person who owes taxes to CRA. A tax lien can be placed on your home, car, or other property if you owe withholding taxes, income taxes, HST or any tax liability.
Canada Revenue agency can also enforce wage garnishments for tax debts without obtaining a court order. They can send your bank a Requirement to Pay notice and your bank account will be frozen.
If you owe back taxes and are unable to work out payment arrangements with Revenue Canada, to prevent these collection actions it may be necessary to file a consumer proposal or personal bankruptcy. Even if you have already received a garnishment notice or lien action, you still have options.
Contact a federally licensed bankruptcy trustee today for help.