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

Author: Warren Orlans

Welcome to inTAXicating. inTAXicating has been published since 2008 to provide clarity around Canadian taxation issues, primarily related to the Canada Revenue Agency. As the primary author, Warren Orlans, has over 20-year's experience in the taxation industry, 11 of them working for the Canada Revenue Agency (CRA), and 7-years working in the private sector Managing the tax departments for large financial institutions. If you have a collections, compliance or audit issue with the CRA, inTAXicating is the place you need to contact. inTAXicating works in strategic partnership with amazing accountants, tax lawyers, insolvency practitioners, mortgage brokers, debt counselling experts and much more. If you have a tax question, feel free to ask in the comments, or email me at either info@intaxicating.ca, or intaxicatingtaxservices@gmail.com.

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