Can CRA freeze my bank account?
Yes. CRA can issue a Requirement to Pay to your bank, which allows them to freeze and seize funds without a court order.
Can CRA garnish my wages?
Yes. CRA can legally garnish wages, salaries, and other income until outstanding balances are paid.
What happens if I ignore a CRA review letter?
If you don’t respond, CRA may deny the claim under review and reassess your return with penalties and interest.
What records do I need to keep for CRA purposes?
Individuals and businesses must keep all records for at least 6 years from the end of the tax year. CRA may request them at any point.
Can CRA audit my payroll records?
Yes. CRA can audit payroll remittances to ensure source deductions (CPP, EI, income tax) were correctly withheld and remitted.
What happens if payroll remittances are missed?
CRA will assess penalties and interest. Directors of the corporation may be personally liable for unpaid source deductions.
Can CRA seize business assets?
Yes. CRA has authority to seize and sell business assets if tax debts remain unpaid after collection attempts.
What are assurance letters from CRA?
Assurance letters are requests for proof of specific claims, such as medical, moving, or charitable deductions etc.
Can CRA revoke my GST/HST registration?
Yes. If a business fails to file returns or remit collected tax, CRA can cancel registration and assess outstanding balances.
Can I negotiate a payment plan with CRA?
Yes. CRA allows taxpayers to arrange payment plans if they cannot pay the full balance immediately. Interest continues to accrue.
Can CRA place a lien on my property?
Yes. CRA can register a lien on real property, which gives them priority over most creditors.
Can CRA access my foreign bank accounts?
Through international tax treaties, CRA can receive information from foreign tax authorities about offshore accounts.
What should I do if CRA starts an audit?
You should cooperate, provide requested records, and ideally work with a tax professional or CPA to ensure compliance and protection.
What is audit representation?
Audit representation means a tax professional communicates with CRA on your behalf, ensuring your rights are protected during the process.
What happens if CRA finds unreported income?
CRA will reassess your return, add the income, and charge penalties plus interest. Repeated offenses may trigger gross negligence penalties.