CRA & Overdue Taxes
What happens when you don’t file your taxes or have overdue taxes?
There is an increase in number of people who have not filed their tax returns. It is understandable that there are many priorities in people’s lives and it is becomes increasingly difficult for person to catch up with their filing requirements.
The CRA, however is not very sympathy. To CRA not being in compliance with income tax act no matter what the cause, merits financial or legal punishment.
CRA will not offer any relief from CRA collection actions such as income garnishment or bank levy, until you complete and file all tax returns. So the sooner you file all your back taxes, the sooner the CRA will be willing to negotiate with you.
CRA will send you a demand to file for the current year tax return; CRA may also wait for few years and then take increased measures to make you file( lock up your bank, garnish your income, bank levy, etc). You need to keep in mind that CRA will eventually find you and if they do, you will have to face the late filing tax penalties and accumulated interests starting from the date when the tax is due.
With advances in technology, CRA has been using an enhanced database to identify people who have unfiled tax returns. If you have unfiled returns, you are automatically on the list of most wanted people for tax collection. If you can act before CRA gets to you, you have a better chance of resolving your tax problems without going thorough the pain of legal action. Intentionally not filing, or filing a false return, is a crime. It is critical to take action to resolve your unfiled return problems before a simple mistake becomes a crime.
Working with Us
To control your damage right away, we do assessment and determine your filing obligations. Then we will quickly help you to reconstruct all the financial information and locate all your missing pieces of tax information to report your returns properly.
Unlike seasonal accountants or the tax filers, we can not only fix your unfiled tax return problem, but can help you to negotiate with CRA for the matters before and after the filing.