03 Jan Are you self-employed with Canada Revenue Agency Debt?
The nature of the economy is changing, and with that, we’re seeing an increase in self-employed clients who are responsible for managing, not only their personal taxes, but also taxes related to their business. We understand not everyone loves to crunch numbers as much as our Insolvency Trustees do. So, sometimes, staying on top of your tax returns can become overwhelming and result in getting behind in payments to Canada Revenue Agency (CRA).
When a self-employed Canadian realizes they’re in arrears with CRA, they may become nervous about compromising the sustainability of their business, so they continue not to file their taxes. However, the more you prolong this process, the more severe your financial penalties will be when you, inevitably, must file. More importantly, not filing your personal or business-related taxes will affect one another; and, you may be putting your business, home and other assets at significant risk.
If you find yourself in potential trouble with Canada Revenue Agency, there are solutions you can take advantage of.
When you’re faced with a financial situation that is beyond your means to remedy, you should try to use all available options to reduce your monetary burdens and position yourself for improved financial health.
Did you know that both Income Tax Debt and HST are an unsecured claim when you file a Consumer Proposal or an assignment in bankruptcy? That means, you may be able to wipe out a portion, if not all, of the income taxes you owe to Canada Revenue Agency. Of course, there are specifications and limitations regarding every circumstance. But, McLennan & Company’s debt insolvency experts can help you to figure out exactly which taxes and debts you’ll be able to incorporate into your claim of bankruptcy or Consumer Proposal.
If you are in a situation where you are behind in your taxes by a significant amount and are afraid to file your returns, visit McLennan & Company for a no charge initial meeting to discuss your options and find out how we can get you out of debt – with your business, dignity and peace of mind intact.