CRA Tax Collection Restrictions on Disputed Tax Debt

Canada Revenue Agency Tax Collection Restrictions on Disputed Tax Debt – Notices of Objection and Appeal – Tax Consultants Canada Analysis

Canada Revenue Agency Tax Collection Powers

In order to collect a tax debt, the Canada Revenue Agency (the “CRA”) is granted a wide range of tax collection powers under the Canadian Income Tax Act and our tax consultants Canada can provide tax help to stop CRA collections officers. Generally speaking, tax collections actions can begin once 90 days have elapsed from the date a tax notice of assessment is sent to a taxpayer. Once CRA tax collections have begun, the CRA can file an application to federal court to put a charge or lien on a tax debtor’s property, for example on a tax debtor’s land or house. Without a court order the CRA tax collector can garnish the wages of a tax debtor, and require third parties to pay monies that would normally be payable to the tax debtor directly to the CRA, for example rent, interest, dividends or other periodic payments. Where the CRA requires a third party to pay or garnish and they do not do so, that third party then becomes liable to the CRA for the amount that they were required to but did not pay to CRA.

Additionally, the CRA can seize goods, chattel, and moveable property from a tax debtor. To do so, the CRA must give the tax debtor 30 days notice sent by registered mail to the last known address of the tax debtor. If the tax debt is not paid within those 30 days, the CRA tax collector can have those properties seized. After seizure, the CRA must wait 10 days, after which they may sell the seized property by public auction with any surplus after deducting the amounts owing being returned to the owner of the seized property. If you owe a tax debt to the CRA, call our top tax consultants Canada and we can provide tax help to allow you to deal with CRA’s tax collections efforts.

Restrictions on Canada Revenue Agency’s Tax Collection Powers

Clearly the CRA wields considerable power in fulfilling their tax collection duties. However, they are not without their limitations and restrictions and our tax consultants Canada can provide you with timely tax help. For example, the 90 day period from date of tax assessment that has to elapse before the CRA can take collections actions is in reference to the time a taxpayer is given to file a notice of objection. After a taxpayer has been assessed, he has 90 days in which to file a notice of objection, during this time no collections actions can be taken. Additionally, if a taxpayer files a valid notice of objection or appeal disputing the tax debt, the CRA cannot collect on any debt that is in dispute until that dispute is resolved.

CRA Tax Debt Repayment on Objections and Appeals

Beyond just freezing the CRA’s ability to collect on debts, filing a notice of objection or appeal will also allow a taxpayer to recover such amounts that they have paid or given as security to the CRA. Specifically, under subsection 164(1.1) of the Income Tax Act, if the CRA has not confirmed or varied the assessment or issued a reassessment within 120 days of being served a notice of objection, the taxpayer can ask in writing for the CRA to return any amounts the taxpayer has paid to them exceeding any undisputed debt as well as any tax debt security that the taxpayer has provided the CRA. For example, where the taxpayer has been assessed for $10,000, has paid $5,000 and then disputes $9,000 of the amount assessed, the taxpayer can ask the CRA to return $4,000 to him. If you have received a notice of assessment or reassessment or have CRA tax debt collection problems and need tax help, call our experienced tax consultants Canada who will make sure you are exercising all of your legal rights and will fight the CRA tax collections officers for you.


Team of Canadian Tax Lawyers

Nathaniel Hills

Nathaniel Hills

Nathaniel completed his Juris Doctor degree at Osgoode Hall Law School where he excelled in the areas of tax law and legal writing and research.He successfully completed all of the requirements of Osgoode’s Taxation Law Curricular Stream

Carson Pillar

Carson Pillar

Carson Pillar articled with us and then joined our tax law firm as an associate Canadian tax lawyer having been called to the Ontario bar in June 2016. Carson runs our Calgary tax office. Carson earned his Juris Doctor from Western University and graduated in 2015.

Ian Thomas

Ian Thomas

Ian Thomas joined our Toronto tax law firm as an articling student (student at law) in July 2016 and upon becoming a Canadian tax lawyer in June 2017 he becomes our latest tax associate. Ian earned his Juris Doctor from Osgoode Hall Law School and graduated in 2016.

Tigra Bailey

Tigra Bailey

Tigra Bailey has now joined our tax law firm as a summer tax law student and is expected to return as an Articling Student in 2017-2018. Tigra is completing her Juris Doctor at Queen’s University and her expected graduation date is in 2017.

Ildi Makrai

Ildi Makrai

Ildi has joined the law firm of Rotfleisch & Samulovitch PC in June, 2000 and brings over 25 years of legal secretarial experience to the firm. She started as a Legal Secretary and after obtaining Certificates from The Institute of Law Clerks of Ontario

Jamin Chen

Jamin Chen

Jamin Chen joins our tax law firm as an articling student in September 2016 after earning his Juris Doctor from Allard Hall at the University of British Columbia.

Rotfleisch & Samulovitch P.C.

2822 Danforth Avenue
Toronto, Ontario M4C 1M1

Phone : 416-367-4222

Fax : 416 367 8649

Email : david@taxpage.com

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