Falling behind on your taxes can feel overwhelming, but you’re not alone — and you do have options. At Debt Wise Solutions, we help individuals and families find practical ways to tackle tax debt and regain financial peace of mind.
What Happens If You Owe Taxes and Can’t Pay?
When you owe taxes to the CRA (Canada Revenue Agency) and don’t pay on time, interest and penalties can quickly add up. The CRA can take serious collection actions, including freezing your bank account, garnishing your wages, or placing a lien on your property. That’s why it’s crucial to take steps sooner rather than later.
Steps You Can Take to Deal With Tax Debt
✔ File Your Tax Return Anyway
Even if you can’t afford to pay your balance right now, always file your tax return on time. This helps you avoid additional late-filing penalties.
✔ Contact the CRA to Discuss a Payment Arrangement
The CRA may allow you to set up a payment plan to pay off your debt over time. Be honest about what you can afford each month.
✔ Explore Taxpayer Relief Options
In certain cases, you may qualify for taxpayer relief to have interest or penalties reduced if circumstances like illness, financial hardship, or other valid reasons prevented you from paying on time.
✔ Consider a Debt Relief Program
If you have other debts on top of your taxes, it might make sense to look at a bigger solution. A Licensed Insolvency Trustee (LIT) can help you file a consumer proposal or bankruptcy, which can include CRA tax debt in some cases.
How Debt Wise Solutions Can Help
Our team works with trusted Licensed Insolvency Trustees and debt professionals to help you find the best option for your situation. Whether that’s negotiating with the CRA, setting up a manageable payment plan, or exploring a consumer proposal, we’re here to guide you every step of the way.
Get Help Today
Tax debt doesn’t have to keep you up at night. Reach out to Debt Wise Solutions for a free, confidential consultation. Let’s find a solution that works for you and helps you move forward with confidence.
