CRA Collections Department is the New Super Collection Agency
CRA Collections Department is the New Super Collection Agency
CRA has new training programs and videos teaching collections officers how to collect the maximum amount of money possible.
CRA’s mandate is The governments are our clients. Taxpayers do as they are told.
Our inside sources tell us the stressed out collections officers question is “what do we collect next? Parking Tickets?
This overly aggressive behaviour comes directly from the government of the day. Our governments drive for money is has turned CRA into a collections machine never seen before in Canada.
It does not matter whose lives are ruined or who dies of stress. Money has no feeling, no conscience and has no friends. CRA is under huge pressure from above to collect and collect quickly.
So make sure that you keep audit ready books or you just may find yourself looking down the double barrel shot gun and if you don’t have great records you are dead.
Regarding CRA Collections: What are they really like? A realistic view.
Firstly I need to acknowledge that there are lots of good people who work for CRA collections, but no one ever complains about the good guys and girls. It is the hard asses that make life horrible for the average taxpayer who gets in default of paying their taxes.
When someone is having financial problems, and they are in arrears with CRA, That is when trouble really begins. If is important to deal with tax debt in a proactive mode. It is a lot less problematic before CRA Collections comes calling. Even worse is if your account goes to Collections.
If CRA’s first line collections is not paid to their satisfaction the account goes to Aged Collections. That is where things get nasty. Very nasty! Once someone is in aged collections, that means the gloves are off and it is a case of Big Mack Truck versus a small furry animal. At this point CRA senses that you are in financial trouble and comes in for the kill.
This is where life gets simple. One either has the assets to pay and you better liquidate them and get CRA Collections satisfied or have your life ruined. It is as simple as that. Kevin O’leary from the TV show Dragon’s Den says, “money has no feelings and no emotion. People care about money, but money does not care about people.” CRA Collections is the same as money, they don’t care about people. It is a matter of “Show Me The Money!”
If the tax bill cannot be paid, then it is a simple case of taxpayer insolvency. In which case this needs to be acted on promptly.
Someone in this position needs to get good consulting and quickly. We recommend talking to us before meeting a Trustee. We work with Trustees and we can make this process a lot less intimidating and stressful.
In aged collections, CRA sometimes even puts in writing; “There are no restrictions under the ITA or ETA as to what they can do. What they are legally allowed to do and what they sometimes do is quite different. An additional CRA collections bonus, so to speak.
CRA knows full well most people cannot defend themselves when they are already in financial trouble. Therefore there are many times where people pay up or go bankrupt when they really did not owe any money to CRA.
Here are some examples of what CRA can to when the gloves come off and they go for the kill:
- The Requirement To Pay on any sources of income.
- Freezing any and all bank accounts.
- Go after spouses corporation using relatedness arguments.
- Harassment phone calls and visits
- Embarrassment at the banks
- Do hard credit cheques at the credit bureaus
- Send legal warning letters
- Stop spouses tax credits
- Do home drop ins… two collections officers in black leather jackets
- Harassment of spouse
- Talking to neighbours, suppliers and tenants
- Issuing of Requirements to pay to taxpayers customers
- Drop in for a visit at work
- Ruin his health
- Kill him from Stress
Once CRA has certified the debt, they can harass an estate even after the death of the taxpayer.
Just be aware: CRA Collections is worse than anyone realizes. It is where things get very dirty and terrifying, that is why fixing tax problems is more expensive once the debt goes to collections. Unless you get a decent collections officer, you are going to be in one hell of a fight.
For those of us who go to battle with CRA to get what is right, we fight a very hard battle. There is no way one can deal with CRA and not take a whole load of stress home at the end of the day.
Most of the tax business services offered to clients by some accounting and legal firms is a joke. There are other top guns out there, and you need to make sure that you hire a seasoned professional with a track record of success. Most professionals are afraid for themselves and with good cause, therefore they often won’t take the fight far enough to get what is right.
If you are to survive CRA Collections, you need a strong fighter in your corner.
To get help with your CRA Collections problem, let us know what is happening and we will get to you very shortly.