Collections

March 21, 2025 Government Announcement re: GST/HST and Corporate Tax Relief for Businesses Canada Revenue Agency (CRA) is implementing relief from GST/HST and corporate tax remittances for approximately 3 months.According to the government’s announcement businesses can “efer corporate income tax payments and...

Understanding Trust Amounts and CRA Collections When running a business, understanding your responsibilities around trust amounts and how the Canada Revenue Agency (CRA) handles collections is crucial. Failing to manage these obligations properly can lead to audits, penalties, and aggressive collection action. This article...

Understanding Tax Treaties: The Basics and Importance Tax treaties play a pivotal role in the global tax system. They are bilateral agreements between two countries designed to avoid double taxation on income and capital, as well as to prevent tax evasion. In an increasingly interconnected world, where businesses and...

Overview of the CRA Collections Process Canada Revenue Agency (CRA) has specific guidelines and periods regarding the collection of outstanding tax debts.  Assessment and Notification:After filing a tax return, the CRA assesses the return and issues...

CRA Collections When taxpayers fall behind on their tax obligations, the Canada Revenue Agency (CRA) has broad powers to collect outstanding amounts. Whether you are an individual or a business, understanding the CRA’s collection process is critical to protecting your financial interests and resolving tax debts...

The authors of this article address the serious problem of lack of effective recourse for Canadian taxpayers where they are subject to the abusive exercise of audit and/or assessment powers by tax officials:...

In Canada, the obligation to report income accurately to the Canada Revenue Agency (CRA) is not just a legal requirement but a cornerstone of our tax system. However, instances of unreported income can arise due to various reasons, sometimes inadvertently, leading to potential legal implications with the CRA. Understanding Unreported Income...

Gross Negligence Penalties are meant to penalize taxpayers for their failure to meet tax obligations such as not reporting income or claiming false credits. If the alleged tax avoidance or evasion is related to GST/HST the penalty is 25%. For income tax, 50% is applied to any balance owing. Technically, to uphold a gross negligence penalty, the...

When taxpayers owe money to the Canada Revenue Agency (“CRA”), the amounts can quickly rise because the CRA charges interest on top of the amount owing. Additionally, if you file late, the CRA will hit you with penalties, and they even charge interest on those penalties. Before you know it the amount you owe could be insurmountable.Interest...

Bulk Taxpayer Relief Requests & Extreme Weather Events Canada Revenue Agency (CRA) released guidance on “bulk” taxpayer relief requests as well as taxpayer relief for “extreme weather events.” CRA makes specific reference to the “unprecedented...