Tax Debt - Steve Welker and Company Inc.

Tax Debt

We’ll help you find the right debt relief option whether it’s credit counselling, debt consolidation, debt settlement, a consumer proposal, or bankruptcy.

We can help with Tax Debt.

It’s true. Most people are surprised to hear it, but the truth is that we help people with their tax problems everyday, and only our services can discharge your responsibility for Personal Income Taxes, HST, Payroll Source Deductions, and corporate director tax liabilities.

  • We meet skilled tradespeople who serve as subcontractors, and fall behind on their taxes
  • Individuals who’ve had their charitable deductions denied
  • Individuals who were up to date until their business hit a road block, they dipped into their tax savings, and could never catch up
  • Individuals who haven’t filed taxes in many years, and get assessed with large amounts of interest and penalties for not filing on time
  • Individuals who simply haven’t filed in years and aren’t sure what they owe

No matter why you owe the Canada Revenue Agency, one fact remains the same: Tax debt is stressful! In our experience, it’s also a complicated area that requires professional help; it’s not as straight forward as credit card debt, or unsecured loans. The Canada Revenue Agency requires specific returns and information to be filed with them by certain due dates, and has the power to collect its debt in ways that most other creditors don’t. For example, the Canada Revenue Agency can garnishee your wages, freeze your bank account or register a lien on your property without a court hearing. Maybe this has already happened to you.

When dealing with the Canada Revenue Agency the first step is what we call compliance, meaning filing all outstanding returns be they HST, personal income tax, payroll, or corporate tax filings. Only then can the Canada Revenue Agency or a Licensed Insolvency Trustee accurately calculate your total tax debt. Some people who haven’t filed for years actually have refunds waiting for them.

Getting caught up on filings can be a challenging task for a number of reasons including:

  • Lack of records – Many individuals have failed to keep receipts or records of their business activity
  • Cost – Accounting fees can prove unaffordable for some; especially when many returns must be filed at once
  • Lack of knowledge – Many people don’t know where to begin, or who to approach, and are scared to call the Canada Revenue Agency directly

If you can afford it, hire an accountant to help. If you lack accurate records consider obtaining old bank and credit card statements and providing them to your accountant.

If you’re able to have all outstanding returns filed, and the debt appears manageable, you might consider applying for interest relief from the Canada Revenue Agency who may grant relief to individuals who are unable to pay, suffering from financial hardship, or have experienced other extraordinary circumstances.

If you can’t afford an accountant, and are certain that you can’t afford to repay the taxes that you owe, then give us a call. We’ll discuss how to obtain the necessary information to get caught up on your filings, protect yourself from collection action, and ultimately erase your tax debt.

If you own a home, you might consider refinancing, or using a home equity line of credit to repay the Canada Revenue Agency.

If you’re working, and earning an income, we suggest speaking with the Canada Revenue Agency’s collection department to work out a payment arrangement.

If you:

  • Don’t own a home, or can’t refinance it
  • Can’t afford to hire an accountant to file your outstanding returns
  • Can’t afford to repay your tax debt and all of your other debt plus interest

then a Consumer Proposal may be your solution.

A Consumer Proposal:

  • Erases tax debt
  • Stops Interest – zip, zero, nada – Interest free.
  • Consolidates your debt into one single payment
  • Protects you from your creditors, including the Canada Revenue Agency
  • Allows you to repay less than you owe
  • Costs nothing to start
  • Allows you to keep all of your assets
  • Doesn’t require any minimum credit score, and is therefore easy to qualify for

Contact a Licensed Insolvency Trustee

Some of us face personal financial crisis during our lives. We may be able to solve some money problems ourselves, but sometimes we need professional help. The situation may have gradually worsened over time, or happened suddenly because of a job loss, serious illness, divorce, or other major life event.

Whatever the cause, if you’re struggling with debt, you have options. Recognize the danger signals.

You may have a debt problem if:

  • You’re self employed and haven’t filed your taxes in years
  • You’ve had your bank account frozen or wages garnisheed by the Canada Revenue Agency
  • You’re relying on debt to balance your monthly budget
  • Your balance with the Canada Revenue Agency or other creditors isn’t falling, and might even be rising each month
  • You have other debts, that when combined with your tax debt, is unmanageable
  • Banks, credit card or other collection companies call you, threaten to sue, or have obtained a wage garnishment

Meet with a Licensed Insolvency Trustee to go over all of your options

If you are facing serious financial difficulties, you will want to meet with a Licensed Insolvency Trustee. When you meet with a Licensed Insolvency Trustee, try to assemble as much information about your financial situation as possible including: credit card statements, bank statements, pay stubs, mortgage records, loan documents, etc. Knowing which tax returns have not yet been filed, and how much the Canada Revenue Agency believes that you owe them is also very helpful. The Canada Revenue Agency can be reached at 1-800-959-8281.

A Licensed Insolvency Trustee will explain your options and the advantages and disadvantages of each option. The consultation is free, and it does not cost anything to start working with a Licensed Insolvency Trustee. If you are asked by for money up front it is a red flag; call us instead.

What is a Licensed Insolvency Trustee?

A Licensed Insolvency Trustee is an officer of the court who balances the interests of you and your creditors. In addition to helping you assess your situation, a Licensed Insolvency Trustee will inform and advise you about both the proposal and bankruptcy processes and play an impartial role in ensuring your rights, as well as those of the creditors, are respected.

A Licensed Insolvency Trustee is the only professional authorized to administer government-regulated insolvency proceedings that allow you to be discharged from your debt, such as a consumer proposal or a bankruptcy.

When you work with a Licensed Insolvency Trustee, you can rest assured that you are dealing with someone who has demonstrated that they have the knowledge, experience and skills to be granted a license from the Office of the Superintendent of Bankruptcy, and is overseen by federal regulators.

A Licensed Insolvency Trustee:

  • Reviews your unique personal financial situation and explains all options available to you
  • Answers all of your questions
  • Assists you in filing the required government forms
  • Guides you through the entire insolvency process from beginning to end
  • Deals with all your creditors on your behalf
  • Collects payments from you, holds them in trust, and legally distributes them to your creditors as required by law
  • Provides two free credit counselling sessions to you
  • Reports the completion of your insolvency process to the Federal Government who in turn reports your completion to both Canadian Credit Bureaus

Not sure what to do next?

  • Request a Free Consultation
  • Give us five (5) minutes on the phone
  • Let us give you some free advice, explain your options, and do our best to guide you in the right direction

We don’t sell our services. We simply assist you to understand your options and support you in deciding what path is best for you.

We look forward to hearing from you

Request free advice from a Licensed Insolvency Trustee

Canadian laws allow you to have a fresh financial start.

Why wait? Take control of your debts now. The sooner you get started, the sooner you will leave debt and stress behind.

Book a Free Consultation