The CRA offers taxpayers the ability to pay any outstanding debt in monthly installments—if they can prove, via the proper documentation, that they are unable to pay their full liability in a single payment. During this payment plan period, the penalties and interest on the taxpayer’s account continue to accumulate; these fees must therefore be taken into consideration when creating a monthly payment offer. The taxpayer, if qualified, can request to cancel or waive some of the penalties and interest through the Taxpayer Relief Program.
This process can seem straightforward, but is often plagued with inconsistencies on the part of the CRA. Best Canadian Tax uses our experience in the tax industry to ensure that the debts being claimed are accurate, and that the payment schedule and amounts are based upon the taxpayer’s ability to pay. It is important to ensure that the taxpayer is entering into an agreement that they can fulfill, instead of being bullied into a payment plan that is financially burdensome. Our payment plan services have been honed over time to ensure that the taxpayer is represented fairly through the entire debt negotiation process.
Call Best Canadian Tax for a free consultation that will assess your options in a way that is feasible for your financial future. Don’t negotiate with the CRA without proper representation, and remember: We work for our Client’s Best interests—not the CRA’s.
A payment plan negotiation through Best Canadian Tax (BCT) ensures that:
1. The amount being claimed by the CRA is accurate.
- BCT will access and review our clients’ statement of account information—via CRA form E-PD7A—in order to amend any inconsistencies in debt calculation.
2. The terms of the payment plan meet the financial needs of our clients.
- BCT will use our client’s current financial records as a basis for creating a monthly payment amount. This ensures that our clients are able to meet the obligations set forth by the payment agreement—without any undue financial hardship.
3. The proposal for a payment plan is submitted in a timely and accurate manner.
- BCT will contact the CRA immediately after receiving authorization of tax representative via CRA form T1013. Once we begin our correspondence with the CRA, our clients can rest easy knowing that their payment plan is being composed by tax experts with years of experience.
4. The tax payment proposal is amendable to our clients.
- BCT will keep in constant contact between the CRA and our clients, in order to ensure that the proposal meets the satisfaction of both entities.
- Even if you cannot pay a tax debt, it is always important to file your taxes in order to prevent “failure to file” penalties.
- Make sure the amount the CRA is claiming you owe is accurate
- Never enter into a payment plan without assessing your ability to pay; a single absence in payment can nullify any pre‐existing agreements and can work against any future payment plan negotiations.
- Working through a tax representative, like Best Canadian Tax, acts as a buffer to prevent the CRA from using “scare tactics” to force you into a payment arrangement that you are unable to fulfill.