0018 - Debt Related Queston: Bankruptcy Question # 0018

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QUESTION #0018:

I prepared my tax return and it looks like I have a large amount to pay, but I donít have the cash to do this? If I file this, will Canada Revenue garnish my wages? What can I do?



ANSWER:

The Tax Act requires you to file a return, so go ahead and send it in. Wait for your Notice of Assessment to confirm the amount payable and the due date. Generally, if you need to remit payments in installments an arrangement can be made with Canada Revenue where you remit post-dated cheques. There will be interest charged on the amount outstanding. If you simply cannot pay within a reasonable time frame, there is the possibility of garnishment of wages to recover the monies. The only way to stop a garnishment is to file either a proposal or a bankruptcy through a licensed Trustee.