If you owe the Canada Revenue Agency (CRA) money, you may be wondering if they have the power to seize your property. The answer is yes, they can. The CRA has the authority to seize assets, including real estate, to collect unpaid tax debts. In this blog post, we will explore everything you need to know about the CRA’s power to seize property and what you can do if you find yourself in this situation.
What is the CRA’s Power to Seize Property?
The CRA’s power to seize property is granted to them under the Income Tax Act. The CRA can seize your property if you have unpaid tax debts or if you have ignored their attempts to collect those debts. They can also place a lien on your property, which means that they have a legal claim on it.
What Types of Property Can the CRA Seize?
The CRA can seize most types of property, including real estate, vehicles, bank accounts, and investments. They can also seize your wages by garnishing your salary. The CRA will typically start by issuing a demand to pay, followed by a notice of intent to seize. If you do not respond to these notices or make arrangements to pay your debts, the CRA may proceed with seizing your assets.
What Can You Do if the CRA is Seizing Your Property?
If the CRA is attempting to seize your property, it is important to take action immediately. You have several options, including:
- Contact the CRA – The first step is to contact the CRA and try to make arrangements to pay your debt. The CRA may be willing to work with you to develop a payment plan.
- File a Consumer Proposal or Bankruptcy – If you are unable to pay your debt, you may consider filing a consumer proposal or bankruptcy. These options will stop the CRA from seizing your property and may reduce the amount you owe.
- Seek Legal Advice – If you believe that the CRA has overstepped its bounds or violated your rights, you may want to seek legal advice. A lawyer can help you understand your rights and develop a strategy for dealing with the CRA.
Conclusion
The CRA has the power to seize your property if you have unpaid tax debts or if you have ignored their attempts to collect those debts. However, there are steps you can take to avoid having your property seized, including contacting the CRA, filing a consumer proposal or bankruptcy, or seeking legal advice. If you are facing a tax debt, it is important to take action immediately to avoid having your assets seized by the CRA.