Failure is often that early morning hour of darkness which precedes the dawning of the day of success. https://t.co/pZwF1VpBI0
Tax Debt: If you cannot pay in full, part 2in Tax Advice Information and Updates
As mentioned in part 1, the CRA offers individuals and businesses options that they can consider if they have tax debt that they cannot pay in full. Here are the other options that may be applicable to your situation.
Taxpayer Relief Provisions
In some situations, you may be able to ask for relief from penalties and interest charges and reduce the overall amount you or your business owes under the Taxpayer Relief Provisions.
Business and Tax Debt
If you are a business owner, the amounts that you deduct and withhold from the wages of your employees and the GST/HST amounts that you collect from your customers are considered deemed trust amounts.
If your business has a tax debt, it may include corporate income tax and deemed trust amounts.
Note that you cannot use deemed trust amounts as cash flow even if you keep these amounts with your personal or business funds. Deemed trust amounts must be paid in full when owed.
As with individuals, the CRA offers options for business owners if they cannot pay their tax debts in full. Business owners may opt to request for a payment arrangement or taxpayer relief.
Financial hardship provisions
If your debt repayment is making it difficult for you to pay for housing, food, utilities and other necessities of life, you may qualify for help under the financial hardship provisions. You must contact the CRA right away to inform them of your situation.