Recent Posts
Categories
- Bank Loan
- Bankruptcy
- Budget
- Children's Future
- Consumer Proposal
- Credit Cards
- Credit Counselor
- Credit Report
- Credit Score
- Debt
- Debt Collectors
- Debt Consolidation
- Early Retirement
- Financial Freedom
- Financial Literacy
- Financial Problems
- Financing For Renovation
- Gambling Debt
- Holiday Debt
- Income Tax Debt
- Investment
- Money
- Money Management
- Money Saving Tips
- online fraud
- Online Scams
- Owing A Car
- Pawnshop loans
- Payday Loans
- Refinance
- Running Out Of Money
- Save Big Money
- Saving Tips
- Secure Retirement
- student loan
- Tax
- Uncategorized
- Wage Garnishment
Archives
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- November 2015
- October 2015
- September 2015
- August 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
Feeds
5 Important Facts about Income Tax Debt in Ontario
It is tax season in Ontario and the dealing with unexpected Income Tax debt can be overwhelming.
Here are 5 things every person should know about Income Tax and Income Tax debt:
-
Not filing your taxes on time will only make matters worse.
Even if you can’t pay the amount you owe to CRA, filing your return on time will help you avoid significant penalty fees. As of 2017 tax year, filing penalties start the day after the tax deadline with an immediate 6%. Then there is a monthly non-filing penalty on the balance 2%.It is also very important to understand that if a taxpayer files late twice with penalties within a four year period, the penalties double.
-
A different deadline for filing self-employed tax returns does not mean a different deadline to pay amounts owing.
Taxpayers who are self-employed technically have until June 15th 2018 to file their taxes (which is 1.5 months more then a regular tax filer) but it is important to understand that even though the return date is later, the deadline to pay any amount owning without interest is still April 30th 2018. Revenue Canada interest rates are compounded daily and can quickly get out of hand so it is important to understand that they start on May 1.
-
You can be held personally responsible for Corporate income tax debt.
As a director or a corporation you are personally responsible for some of your corporation’s tax debt. A failure to file or pay a company’s corporate income tax can cause Revenue Canada to go after your personal bank accounts and assets.
-
Revenue Canada does not go to court to garnishee your wages or seize your bank account and assets.
The CRA can register your debt with the Federal Court of Canada and once registered it has the same effect as a judgement obtained against you. You are normally not notified of this and if you are you will received very little notice. This means that you must pay the amount in full, and if you do not, the CRA may seize assets and property to try and pay our outstanding debt.
-
Income tax debt can be included in a bankruptcy, proposal, or consumer proposal.
If you file a bankruptcy or a consumer proposal as soon as you know you can’t afford to pay the CRA what they are owed you can eliminate the tax debt and stop Revenue Canada from registering a lien against your home or going after other assets and bank accounts. The sooner you deal with the problem the faster you can avoid CRA selling your assets.
Are debt problems keeping you awake at night? Are you are struggling to make your monthly minimum credit card payments, loan payments, Revenue Canada debt payments? Are you worries about losing your house, car, or investments?
Contact a debt counselling professional today at 1-888-329-5198 to eliminate the stress of Revenue Canada debt.