can they garnish wages? is there a limit to what they can do? is the so called debt settled after imprisonment?
please only intelligent people with straight forward answers on the subject.
i’m not looking for a lesson in misplaced morals or from people who think income tax is actually used for roads and such when it’s only used to pay off a country’s debt and enslave its people
Yes, they can garnish wages for tax debts. They have quite a lot of latitude, and my wife has even seen the CRA max out peoples lines of credit and bank overdrafts to get their money.
Imprisonment would only occur in cases where the non payment of tax is deliberate. Whether the debt would be considered paid after jail time is at the discretion of the court.
on Aug 26th, 2009 at 3:31 pm
Yes, the can seize your bank account and garnish your wages. Don’t fool around with the CRA.
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on Aug 26th, 2009 at 4:05 pm
I didn’t think Canadians paid income tax. I thought that’s why the sales taxes were so high. Am I wrong?
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on Aug 26th, 2009 at 4:31 pm
you won’t get prison time really…
but yes your income could be garnished or other similar measures..
you will get hefty penalties plus interest on what you owe and if you were owed a refund it will pretty much disappear from the penalties.
how to pay as little tax as possible…. -> GOOD ACCOUNTANT
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on Aug 26th, 2009 at 4:47 pm
I worked for a person in Canada that didn’t pay his taxes. The government people came and took property and assets. It actually cost him less than paying.
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on Aug 26th, 2009 at 5:09 pm
Yes, they can garnish wages for tax debts. They have quite a lot of latitude, and my wife has even seen the CRA max out peoples lines of credit and bank overdrafts to get their money.
Imprisonment would only occur in cases where the non payment of tax is deliberate. Whether the debt would be considered paid after jail time is at the discretion of the court.
References :
on Aug 26th, 2009 at 5:48 pm
Yes, they can garnish wages. They can do that without any sort of court proceeding; they are not required to certify the debt in order to send a garnishment. They can also use the Federal court to certify the debt and put liens on your property and/or seize the property. The ITA has collections restrictions in it for personal income tax, but they are pretty straighforward, and not very limiting. For example, the debt must be assessed. They must wait 90 days after the notice of assessment in order to take legal action UNLESS they get leave of the court, which is obtained if they prove the debt is in jeopardy (not often done), they must make reasonable efforts to collect the debt - a new provision was added to the ITA in 2004 where if they do not action the debt for 10 years, they are statute barred from collecting it.
As for jail, yes, they can have you sent to jail, but that is for failing to file, or for tax evasion and tax fraud. Going to jail does not eliminate or reduce the tax debt, but sometimes it is an alternate for the court ordered fine (which is in addition to the tax debt).
I don’t know what province you live in, but here is a link to News Releases for Ontario. Other provinces are on the left hand side.
http://www.cra-arc.gc.ca/newsroom/convictions/on/menu-e.html
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