Quick Options to Stop Interest
Income taxes can be quite daunting to catch up on once you fall behind. The interest accrual alone can increase your existing balance to almost double in one year if a partial or full payment is not made. There is also the intimidation factor that debt can represent in your mind. It creates a fear of loss of income or affects your ability to do what you do best at work or at home.
Think you need help fast and require quick results – give us a call today to find out just how we can help.
What can the Canada Revenue Agency do?
- Freeze your bank account and garnish your monthly wages; anything that gets deposited would be taken.
- Arbitrarily assess any income tax returns not yet filed and apply penalties and interest (backdated) to the amount owing.
- File a lien against your property to ensure the debt is paid when the property is sold or during a mortgage refinance transaction. They are not required to notify you of any lien being placed on the home either.
For further insight always check with your accountant, tax lawyer or income tax professional.
CRA (Canada Revenue Agency) normally goes to drastic measures when you are unable to meet payment demands or simply unable to come to an agreement on what you owe. It is important that you or your tax professional communicate regularly so that the Canada Revenue Agency is fully aware of where you stand with your income taxes.
What types of CRA debt can you assist with?
There is no boundary to the type of CRA debt we can assist with when it comes to you and even your business. Our team of specialists have seen it all and worked to help those facing income tax arrears find a suitable solution.
- Individual income tax
- Payroll deductions
- GST/HST remittances
- Coportate income tax
- Customs, excise, and other levies
- Canada Emergency Response Benefit (CERB) repayment
- And more
With other monthly obligations to focus on you simply may not have readily available resources to pay what you owe. If you are a homeowner and you have equity in your home, there is a good chance you can utilize the equity you have to help payoff your taxes.
Traditional lenders such as your bank or credit union will often refuse to assist when it comes to large tax balances owing. They often feel that it could be the result of on an ongoing issue or that you will continue to find yourself in trouble with the CRA. The only time your home bank may consider helping is if the balance is relatively small – under $5,000.00.
Some common home equity financing solutions to payoff your CRA bill…
- Second Mortgage – can be approved in as little as 24hrs and is not credit or income driven.
- Home Equity Line of Credit – can be arranged quickly and gives you continuous access to the debt you pay down.
- Home Equity Loans – not credit or income qualified and can be approved the same day.
- Accredited Private Mortgage – consolidates all your debt including your income tax arrears.
- Sub-Prime B Lender – provides you with one low monthly payment and consolidates what you owe.
The neat thing about all the aforementioned options is that they can all be arranged quite quickly, clears up your tax debt and stand to better your monthly cash flows. The biggest benefit is that you can avoid a lien being put on your property to prevent losing the home you’ve worked hard to obtain.
If your self-employed, incorporated, in a partnership or simply suffering from unpaid income taxes don’t wait too long to address your problem. It is always best to deal with the income tax issue and CRA head on to avoid interest, and further problems down the road. We work with those suffering from current and past income tax arrears.
Give our office a call today and a member of our team would be happy to listen to your story and go over just how we can help.