CRA TAX DEBT? HOW CHARLES ADVISORY SERVICES CAN HELP
Many people open a business to pursue the dream of being their own boss. Unfortunately, as a result of unforeseen circumstances, businesses can close and leave their owners with outstanding debt.
Fred S. was an entrepreneur who owned an incorporated company that, despite his best efforts, was unsuccessful. After considering his options, he ultimately wound down the business to focus on other financially gainful pursuits.
HST and CRA Debt Collection
Six months after closing up shop, Fred was shocked to receive a letter from the Canada Revenue Agency (CRA). CRA claimed that, as director of the insolvent company, he could be personally liable for $50,000 in unpaid HST. They gave him 30 days to provide a “due diligence” defense, or face being held liable for this amount.
In order to provide this defense, Fred would have to demonstrate that he had, in fact, paid his tax debt and owes nothing, or took reasonable steps to pay but was unable to do so. Neither of these scenarios applied to Fred, leaving him in debt to Revenue Canada.
To make matters worse, Fred had already accumulated $50,000 in personal debt as a result of the closing the business. The added burden of HST debt was financially crippling.
Heavy financial burdens can be stressful for anyone, especially when CRA collection is involved. What if he couldn’t pay? Could they garnish his wages, take his personal property, or worst of all, put him in jail?
Taking Action on Tax Debt
Instead of letting an unpleasant situation get the best of him, Fred wisely took the initiative and called Charles Advisory Services for help. After welcoming Fred into our office, we agreed to act as an agent on his behalf. Our team got to work developing a debt management solution that fit his budget and would clear up his outstanding debts as quickly as possible.
“When people come to a trustee for help,” says Robert Charles, B.A., CIRP, Licensed Insolvency Trustee. “They’re not sure what to expect. Our first priority is to make sure the client knows that we’re on their side and will take care of their needs.”
Read more on… CRA TAX DEBT? HOW CHARLES ADVISORY SERVICES CAN HELP
Author: Robert Charles