GST and Payroll Source Deduction Arrears
We often meet clients who have a story similar to this, “My business got behind on its trust accounts. I need to use the trust account money to continue to operate. I keep hoping that next month is going to be better but it never is.”
Since we began helping our fellow Albertans with their tax issues, over 40 years ago, we have helped hundreds of people with CRA trust debt problems. We have been successful in some cases, by using a fair payment arrangement and working with the Canada Revenue Agency collection officer. Our tax strategies can help stop the CRA from proceeding with freezing bank accounts, income garnishees, contacting your accounts receivables to issue further garnishees. Having your accounts garnished can be embarrassing and often results in further business losses due to a damaged reputation.
The CRA will assess you personally if you are a director of the company for these debts. They will assess you using a Director Liabilities Assessment or they will possibly assess you under Section 160 of the Income Tax Act or the equivalent Section of the Excise Tax Act, if you are a shareholder. In some cases, there are defenses to these assessments; it is there tax defense strategies where Cawston & Associates specializes.
We can object to these trust debt assessments and in some cases we are successful. By filing a notice of objection, collections can no longer take collection action on the disputed amounts. CRA gives you 90 days to file a notice of objection. If you miss this deadline, in some cases we are able to get you an extension of time to file the notice of objection.
If you are in this position, please contact us for help.
Continue Filing Your GST Returns and Payroll Source Deduction Forms
Times are tough on many businesses right now. One problem that many of our clients face is how to pay their current payroll, and many end up using their payroll source deductions to do this.
Even if you can’t pay it is important to continue filing your GST returns and Payroll source deduction forms.
These debts are considered trust debts by the Canada Revenue Agency. Trust debts have different collection rules that can allow the Canada Revenue Agency to shut down your business.
Even if you operate an incorporated entity the Canada Revenge Agency has the ability to assess all the directors of the company for any trust debts that are not paid.
We can work with the agency to make a payment arrangement that doesn’t put you or your business into financial hardship.