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Protecting Personal Assets from CRA
Protecting Personal Assets of Small Business Owner’s from CRA Collections
- Never use your home address as your business address. If you have a business location outside of your house use that location. If CRA collections issues a direction to the sheriff to prepare a report of assets, the sheriff will go to the business address.
- If the corporation has debts to the CRA, attempt to make a payment arrangement. A payment period of 6 – 24 months has a better chance of acceptance by CRA collections. You provide post-dated cheques for the payment period.
- If a payment arrangement has been made, and the cheques issued to CRA, provide this proof to the agent
- Ensure there are sufficient funds in the bank account to cover the amount of the cheques. A bounced cheque forces the CRA collections officer to look for other sources to obtain the money.
- Keep all CRA filings and payments up to date during the period of the payment arrangement. This includes GST/HST, payroll taxes, and income taxes, etc.
- Apply for interest relief while the corporation is paying off the debt to CRA. If accepted by CRA, the outstanding balance will be decreased.
- If you can make an additional large payment while paying the arrangement, this will reduce the interest on the outstanding balance.
- Be honest with the CRA collections officer, whether you have nothing (or something) to hide. Do not say anything to cause the collections officer to be concerned.
- Similarly, if the CRA collections officer requests information, be sure to provide it. Try to build trust with the collections officer, so that the person may show some discretion.
- Be polite to the CRA collections officer. She or he is just doing their job.
- If there is a personality conflict between the CRA collections officer and you, request a meeting with he or she, their supervisor and you. Attempt to improve the relationship to resolve your tax issues.