How the Canada Revenue Agency (CRA) Views Detaxers / Natural Citizens / Freemen

I recently had the “opportunity” to watch a video from a “Freemen” or “Detaxer” as they would be referred to by the Canada Revenue Agency (CRA).

I’m not going to lie… It made me cringe.

I was immediately brought back to my time spent working for the CRA, and more specifically, to the time spent working with these folks.  You see, the CRA knows there are corporations and individuals who evade and avoid taxes, and a lot of time and effort is spent to find and prosecute these entities. 

They CRA is also very aware of a large groups of individuals who see themselves as “natural individuals” and thus free from “illegal taxation”. They consider themselves to be free on the land, and make some story about being “corporations” and that they have 2 names, one legal and one given to them and they conveniently use the one that doesn’t require them to pay taxes.

To make a long story short, these groups use Canadian infrastructure – buildings, roads, power, etc., yet see themselves as sovereign and thus free from taxation.  They have been known to hold info-sessions and sell “tax-free” cards to the attendees – who try to use them only to find the RCMP at their door and their cards seized.

The problem with this view, is the fact that there have been MANY court cases dealing with this matter and in each and every case, the CRA has won. There is ZERO precedent for this view to have an ounce of legitimacy, no matter which “brilliant” person is trying to convince you or me otherwise.

I’m sorry to say, if you follow these views, you are just asking for trouble with the CRA, and that trouble comes in the form of late filing penalties, interest, gross negligence penalties (50% of the tax owing), assessments, prosecution, and potential jail time.

It’s a scam, so please, do yourself a favour and stay away. It’s in your best interests to avoid this type of theory.

Having worked in the CRA’s collections department for over 10-years, and having deal with these cases for many of those years, I can say with experience, and certainty that what ultimately happens is property seizures, frozen bank accounts, seized funds, wage garnishments and all that pressure applied together until there was no choice but to file and pay, often having to pay hundreds of thousands of dollars in penalties and interest.

Learning about these cases makes me sad, and wish that someone had taken the time to speak to the victims of this scam and answer questions so they know that it never ever ends well or in their favour.

It’s a lose-lose proposition.

Already in trouble?

File your returns, notify the CRA you’re coming clean. Make payment arrangements for your debts. Doing this now, before the CRA gets to you can help you with an application for Taxpayer Relief.

The Canada Revenue Agency Collections Officers are Back in Business: and they’re coming for you!

October is here, and the Canada Revenue Agency (CRA) have been given the green light from the Federal government to collect money.

As a result, Collections, Audit and Appeals are all back in business and they are looking for you!

The CRA’s Collections department are officially back at work this week, able to make collections calls, send collections letters and find money. If you owe money to the CRA, or if you have any outstanding returns owing to the CRA, you can expect to hear from Collections.

Thanks in part to the massive amount of money that this Federal government gave away during the COVID pandemic, you can also expect to be contacted by an auditor, if you received any of those benefits.

If you do hear from the CRA, you might want to act fast. They have been given the orders to act fast, and collect / recover as much money as they can in the quickest manner. That means you can expect a call for a verification audit, and before the phone connection terminates, a letter will be on it’s way, giving you a week or 2 to respond and provide information. If you miss that deadline, your case will be closed, and your file passed along to collections.

If you received any government benefits via Direct Deposit, then the CRA already has your banking information which means once the amount is deemed collectible, they can (and will) just take it from your bank account.

It will be that fast.

Additionally, if you were behind on compliance with the CRA (haven’t filed returns up to date), and you failed to get those done while self-isolating, don’t expect the Collections group to have any mercy on you. You had “plenty” of time to get that done. No excuse or explanation is going to buy you more time.

If you incurred new tax debts, and haven’t made arrangements, or had previous arrears and didn’t make arrears payments while interest rates were at 0%, you have no excuse, in the eyes of the CRA, as to why you still have a balance, or are unable to pay.

The 0% interest rate on balances owing is gone, and the CRA have been given the marching orders from above to collect, collect, collect.

If you need help with anything CRA related, do not hesitate to contact us for assistance, at info@intaxicating.ca