How do I settle taxes owing with the Canada Revenue Agency?
If you have taxes owing leading to significant financial penalties, there is a way to avoid the harsh consequences by engaging the tax settlement amnesty Services in Mississauga. An amnesty company can help you settle your tax liability with the Canada Revenue Agency and avoid this problem.
The following three situations may subject you to the major penalties or, even worse, a criminal charge which could result in jail time:
- You have not filed tax returns in previous years
- Your tax return is more than 1 year past due
- You have unreported income in the current year’s tax return or in the prior years’ tax returns
Voluntary Disclosure Program
The first way a tax settlement company in Canada can help you settle your tax liability with the CRA is through the use of Voluntary Disclosure Program.
The Voluntary Disclosure Program was created by the CRA to allow taxpayers to come forward with unfilled tax returns, past due tax returns and unreported income. By filing under the Voluntary Disclosure Program, taxpayers will be safe from criminal charges, financial penalties will be waived, and interest charges on amounts owing will be significantly reduced.
Taxpayer Relief Provisions
The second way to settle taxes with the CRA is through the use of the Taxpayer Relief Provisions.
The Taxpayer Relief Provisions are located in the Income Tax Act and they are basically a compromise between the CRA and the taxpayer on the amount of taxes owing to the CRA.
The most common circumstance for individuals to qualify for the Taxpayer Relief Provisions is claiming financial hardship. That is, you must demonstrate that you are suffering from financial hardship and that you cannot pay the entire amount of taxes owing to the CRA.
The CRA wants their money but they are also reasonable. They know that due to your financial situation, you may not be able to pay the full amount.
I highly recommend that you engage the services of a Tax Settlement (Amnesty) Company in Mississauga, Oakville or Toronto to settle your taxes with the CRA, because the income tax rules are highly complex and the administrative bureaucracy in the CRA is mind-boggling.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.