Will Canada Revenue Agency seize my tax refunds?
Unfortunately, if you owe income tax, the answer is yes.
If you owe income taxes, CRA can seize any tax refund otherwise owed to you for the years prior and including the year of your proposal. For example, if a debtor owes taxes for the 2008 and 2009 tax years, and files a consumer proposal in March, 2011, any refund they are due for the 2010 tax year (the year prior to the proposal) AND the 2011 tax year (the year of the proposal) will be seized by CRA against the amount owed to them.
After the proposal year, all further refunds are sent to you.
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.
