Collection of Tax Arrears

• Income Tax Act;
• Canada Pension Plan Act;
• Employment Insurance Act;
• Excise Tax Act;
• Customs Act;
• Petroleum and Gas Revenue Tax Act;
• provincial and territorial income tax acts for individuals (except in Quebec);
• provincial and territorial income tax acts for corporations (except in Alberta, Ontario and Quebec).

Eligibility Criteria

Summary

When a taxpayer has tried all reasonable ways of getting the necessary funds, either by borrowing or rearranging his financial affairs, and still cannot pay a balance owing in full, the department works to establish a mutually satisfactory payment arrangement based on ability to pay.

However, if the debt remains unpaid with no mutually acceptable payment arrangement, after the taxpayer has been notified that he owes money, in writing and/or by personal contact, CRA may take legal action such as garnisheeing income or initiate other legal action such as directing a sheriff to seize and sell assets.

If the taxpayer cannot make a payment on their liability, CRA may allow them to postpone payment until their financial situation improves. During that time, any interest and penalties that apply will continue to accrue on the liability

If you require personal assistance, visit the Tax Service Office closest to you (see Related Reading: Business Window - Supplement or CRA's Web site for a list of addresses).

Ontario Contact(s):
See National Contact.