4 thoughts on “Be Careful: Direct Deposit with the CRA is not for everyone!”

  1. You know that by law, the only way the CRA can remove money from your account is by you signing a pre authorized debit form, or via court order?

    They can’t just take money from you because you have direct deposit.

    Don’t write things that aren’t true. Direct deposit is for everyone. It makes way more sense.

    Source: FPE Level 1, Bach. Business Administration (Fnce)

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  2. Yes they can. CRA can freeze your bank account and the bank has to send your money to them. The court order is a formality.
    DioGuardi Tax Lawyers explains very well this and lot of other stuff.
    Regards

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    1. That’s different. That requires a judgement or a garnishee summons to made against you. They cannot by Canadian law, use a direct deposit authorization as a preauthorized debit agreement.

      Again, writing things that aren’t true makes things more confusing for taxpayers that are seeking actual advice. A court order is not a formality, by the way. The Tax Court judge will issue the order, and the CRA cannot do anything until they receive that order.

      Source: FPE Level 1, Bach. Business Administration (Fnce)

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