Canada Revenue Agency Q & A

Canada Revenue Agency Q & A

Canada Revenue Agency Q & AHi, I’m a CA sole practitioner.  I have a question regarding an individual client who owes CRA a substantial amount of unpaid personal income tax and director’s liability on HST/source deductions. My client advises they have negligible assets other than their principal residence owned 50/50 with their spouse who has no such CRA liabilities.  They are both seniors with health issues.

Q1:  Is there any risk of loss of their home due to CRA debt?

Q2:   If yes to #1, what steps should they consider to prevent the loss of their home?

Q3:  In general, what specific approach would you advise in order to eliminate or reduce this significant personal debt?

Yes, there is risk and CRA can put a lien on the debtor’s house for the unpaid debt. To prevent this they have options and can choose to file a consumer proposal or bankruptcy. If they do choose one of these options, CRA can no longer put a lien on the property. In terms of question #3, the specific approach would depend on a variety of details such as: the option they choose, the value of the house and the balances outstanding on the mortgage.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.  


Read more from our blog