CRA Update

CRA Collections Update

 

Collections activities on new debts will be suspended until further notice, and flexible payment arrangements will be available. 

If a taxpayer is prevented from making a payment when due, filing a return on time, or otherwise complying with a tax obligation because of circumstances beyond their control, they can submit a request to cancel penalties and interest. To make a request to the CRA to have interest and/or penalties waived or cancelled, please use Form RC4288, Request for Taxpayer Relief.

Payment arrangements are also available on a case by case basis if you can’t pay your taxes, child and family benefit overpayments, Canada Student Loans, or other government program overpayments in full.

Collections staff will address pre-existing situations on a case-by-case basis to prevent financial hardship.

Please note that due to measures taken surrounding the COVID-19 virus, our Debt Management Call Centre service is not currently available. We apologize for the inconvenience.

If you have concerns and require contact with a Collections Officer, please contact our toll free number 1-800-675-6184 between 8:00 a.m. and 4:00 p.m. your local time.

 

04/24/2020 CRA Update

The Canada Revenue Agency (CRA) is taking a people-first approach in realigning its resources to ensure that all Canadians and businesses are supported if they are experiencing financial hardship due to the COVID-19 outbreak.

The CRA has heard from Licensed Insolvency Trustees (LITs) and the Office of the Superintendent of Bankruptcy (OSB) about debtors who have suffered a loss of employment or a reduction of income as a result the COVID-19 outbreak and their concerns over defaulting on their proposals.

The CRA is proposing a solution to assist taxpayers and LITs in circumstances where the CRA is the majority creditor and the debtor is experiencing financial hardship.

For proposals filed under Division 1 of the Bankruptcy and Insolvency Act (BIA), the CRA is offering a waiver of the default pursuant to section 62.1 of the BIA and granting a deferral of payments to the estate up to September 1, 2020.  This will also apply to any amounts subject to section 60(1.1) of the BIA as per our existing Administrative Agreement policy with LITs.

For consumer proposals under the BIA, the CRA offers the acceptance of an amended proposal that calls for a deferral of payments up to September 1, 2020.

Hopefully, this will offer taxpayers the time to focus on other aspects of their financial wellbeing without having to file for bankruptcy.

Further notifications will be provided to stakeholders through the Canadian Association of Insolvency and Restructuring Professionals and through updates to the CRA information page on the OSB website.

Limited proxy – Deferral of payments

Limited proxy – Adjournment of Creditors Meeting