Can Canada Revenue Agency Garnish CPP and OAS
Yes, Canada Revenue Agency can garnish CPP and OAS as well as all types of pensions. You may hear that creditors may not do this or may only be able to take a percentage. However, Canada Revenue is not a typical creditor. It is important to stress that CRA has more power than a credit card company or other creditor.
In other words, standard garnishment rules do not apply to the CRA. If you owe taxes to CRA and you receive CPP or OAS, CRA can withhold some or all of your monthly pension payments.
But you do have options:
1. Contact Canada Revenue Agency and discuss the possibility of a re-payment plan before they Garnish either pension CPP or OAS
2. Consider a Consumer Proposal
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