CRA Requirements to Pay (RTPs) Explained: What Taxpayers Should Know
Introduction Many taxpayers are unfamiliar with the term “Requirement to Pay” (“RTP”) until they receive notice that the Canada Revenue Agency (“CRA”) has issued one. An RTP is one of the CRA’s most powerful collection tools and can affect bank accounts, wages, and other amounts payable to a taxpayer. What Is a Requirement to Pay? […]
CRA Wage Garnishment Explained: What Taxpayers Should Know
Introduction The Canada Revenue Agency (CRA) has broad collection powers when tax debt remains unpaid. One of the most serious collection tools available to the CRA is wage garnishment. Receiving notice of a garnishment or discovering that wages have already been affected can create significant financial stress for taxpayers. What Is a CRA Wage Garnishment? […]
Can CRA Freeze Your Bank Account in Canada?
Introduction For many taxpayers, discovering that their bank account has been frozen can be both stressful and confusing. The Canada Revenue Agency (CRA) has significant collection powers under Canadian tax legislation, and in certain situations, those powers may include freezing or seizing funds from a taxpayer’s bank account. Understanding how these collection actions work can […]
Insolvency Filings Are Increasing in Canada
Recent reports have shown a significant increase in insolvency filings across Canada as individuals and businesses continue to face growing financial pressure. Higher living costs, rising interest rates, debt obligations, and economic uncertainty have contributed to more Canadians struggling to meet their financial obligations. For taxpayers and business owners, financial difficulties can become even more […]
T1135 Failure-to-File Penalties: Foreign Asset Reporting Risks
Canadian taxpayers with foreign assets are subject to strict reporting requirements. One of the most commonly overlooked obligations is filing Form T1135, the Foreign Income Verification Statement. Failing to file this form can result in significant penalties — even where no tax is owed. The Canada Revenue Agency (CRA) has increased its focus on foreign […]
Section 160 Liability: Non-Arm’s Length Asset Transfers
Transferring assets to family members may seem routine. However, under Canadian tax law, these transactions can create significant and unexpected liability. Under Section 160 of the Income Tax Act, the Canada Revenue Agency (CRA) has the power to pursue the recipient of property for the transferor’s unpaid tax debts. This rule is strict, widely applied, […]
How to Dispute a CRA Tax Decision: A Step-by-Step Guide
Learn the step-by-step process to challenge a CRA decision and protect your rights. Receiving a decision from the Canada Revenue Agency (CRA) that you disagree with can be overwhelming. Whether it’s a reassessment, denied deduction, or penalty, you have the legal right to challenge it through a structured process. Step 1: Review the CRA Notice […]