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TAX DEBT & COLLECTION
Tax debt can be a serious hindrance to Canadian businesses. It occurs when one is unable to pay their annual income taxes, penalties, or interest. Often, it occurs because of being reassessed for more taxes than one believes they owe. As a result, the taxpayer is indebted to the Canada Revenue Agency (CRA), which could have an unexpected negative impact on your personal or business’ financial position and could prove to be extremely time intensive.
ENFORCEMENT POWERS OF THE CRA
The CRA has far reaching powers. If you owe tax to the CRA, a collection officer will be assigned who will garnish your wages, garnish your bank account, place a lien on your home, seize physical property, set off your other government benefits, redirect funds that are owed to you through a Requirement to Pay (RTP), or hold a third party liable for your tax debt such as a family member to whom you transferred money. The CRA will also charge you interest on the unpaid amounts, compounded daily. Currently, the interest levied is in accordance with the prescribed rate of 5%.
WHY YOU NEED A REPRESENTATIVE
If your bank account has been frozen, your wages garnished or your assets seized, you need a strong representative to defend your interests. At M7 TAX we contact the CRA on your behalf and can negotiate the removal of the garnishment or seizure in exchange for a voluntary payment plan arrangement.
If it appears that your combined debt is greater than your ability to pay, we can contemplate bankruptcy or a consumer proposal. If this is the most suitable option for you, these avenues can remove all or a good portion of your CRA debt.
The reality of running a business, especially in Trucking, is that some parts can be stressful and tedious. M7 TAX can help lessen a load of that responsibility, allowing you to focus on what you love to do and what you’re good at.
Lastly, you may be eligible for Taxpayer Relief which is a method to reduce or altogether remove the interest and penalties you have been levied.
At M7 TAX our job is to make things easy for you and worry about the details so you can focus on the things that make your business great.
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Once you are represented by our firm, the CRA will no longer contact you and, in most cases, no further enforcement action will be taken against you. Our lawyers negotiate with the CRA directly, cease enforcement action and establish a voluntary payment plan. We have the knowledge and experience in handling the CRA’s collection officers and collection practices.
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Owe tax to the CRA and suffering from garnishments? M7 TAX can help. Contact us today for more information.
OTHER SERVICES
Whether you go by calendar year or fiscal year, our team is capable of reviewing your financial activities, preparing your income statements and filing your corporate tax with the aim of maximizing your benefit and minimizing your income tax liability.
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Find out how M7 TAX can develop a package of accounting and bookkeeping services tailored for your business.
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We provide the highest level of service and customized tax advice designed to guide our clients to their most ideal financial and tax solutions.
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The insight of an experienced business consultant can bring the fresh perspective and original ideas to take your business to new heights.
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