Hit enter after type your search item
Home / Business / Finance / What to do if you owe taxes and can’t pay

What to do if you owe taxes and can’t pay

/
img

If you cannot pay the full amount you owe now, you may qualify for a payment arrangement or ask for taxpayer relief. Take action by contacting the Canada Revenue Agency (CRA) right away. Ignoring your debt won’t make it go away.

Find out your options if you can’t pay in full now

The CRA can work with you to set up a payment arrangement in My Account, My Business Account, MyCRA, or CRA BizApp. The sooner you take action, the less interest you’ll have to pay. To make a payment arrangement for you or your business, go to Pay by pre-authorized debit or contact us.

What is a payment arrangement?

A payment arrangement with the CRA lets you make smaller payments over time, until you have paid your entire debt, including interest. The CRA has two new tools that can help you manage your tax debt. Try out our new Payment Arrangement Calculator, which you can use to estimate your payments and the time needed to reduce your debt to zero. The CRA has also introduced an Income and Expense Worksheet. This worksheet will help you calculate the part of your net income that is available to pay your tax debt. To help the CRA determine your ability to pay, you may have to give details of your financial situation and proof of your income, expenses, assets, and liabilities.

Keep on track

Staying up to date with your tax obligations is an important part of managing your finances. If you are struggling to make your payments, the CRA can help you. For more information, see the CRA’s collections webpage and its video series on Debt Collection at the CRA.

  • Facebook
  • Twitter
  • Linkedin
  • Pinterest

Leave a Comment

This div height required for enabling the sticky sidebar
Ad Clicks :Ad Views : Ad Clicks :Ad Views :
%d bloggers like this: