The Canada Revenue Agency (CRA) has very broad powers to collect unpaid taxes, penalties and interest from taxpayers. These powers are granted under the Income Tax Act and Excise Tax Act as well as other legislation.

The CRA can collect money by:

1. Garnishment: the CRA can garnish wages, savings, or salaries by issuing a Requirement to Pay notice to employers, banks, or other sources of income

2. Seizing Bank Accounts: the CRA can freeze a taxpayer’s bank account and withdraw funds

3. Property Liens: the CRA can place a lien on a taxpayer’s property such as real estate or vehicles

4. Seizure and Sale of Assets: the CRA can seize and sell a taxpayer’s assets, like real estate, vehicles or equipment

5. Offsetting Refunds and benefits: the CRA can withhold or redirect tax refunds, benefits or credits

6. Legal action: the CRA can sue the taxpayer

7. Revoking passports: the CRA can request that passports or other federal privileges be revoked (for significant tax debts over $100,000)

Get help

For advice and assistance with tax planning, a CRA tax dispute, or other tax issues, contact KPK Law.

Personal and business tax issues are vast and complicated. To get help, ask a lawyer now.

								
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