tax debt: Bankruptcy Alberta

Posted on Tuesday, April 03, 2007

my common law and I owe CRA about $60,000. We simply cannot keep up with the previously agreed upon payments, and even if we could they aren\'t even touching the principal.

Now CRA is saying that these payments are no longer good enough and they are going to start garnishing wages and writ our home.

No I have a brother who is willing to lend us some money, but how much would the goverment accept to clear the debt without doing a formal proposal?

1 Comments:

At 9:40 PM, Barton Goth, GCO, Bankruptcy Trustees said…

We find that Canada Revenue Agency is not willing to settle debts in an informal fashion. The logic that has been explained to me by the local CRA representatives is that if they negotiate infomally with one person they then must negotiate with everyone informally.

The one mechanism that does exist internally to CRA is the fairness board. Origianlly when the fairness board was implemented it was done so to permit CRA flexibility when dealing with extreme circumstances. However in practice I have never seen nor heard of anyone being acceptable makign an appeal to this board. If you should attempt this appeal please post a comment about your experience for others to reference.