Are you experiencing tax problems with the CRA? If you are burdened with serious debt and tax problems, the CRA may be only one of several creditors that you have to deal with. Although you may be bombarded with advertisements from tax lawyers trying to scare you into believing that you need a prominent tax lawyer in Canada to deal with CRA debt, consulting with a trustee may be a much better option for you. The CRA isn’t looking to prosecute you; they are looking to collect money and a trustee is usually your best option for dealing with debt.
Why use a licensed trustee instead of a tax lawyer? A licensed trustee can:
- Provide you with a full financial appraisal of your situation, including your tax problems leading to CRA debt
- Deal with all of your debts while a tax lawyer only deals with your CRA debt; the rest remains
- Advise you on bankruptcy alternatives which include credit counselling, debt consolidation and consumer proposals in dealing with the tax problems and related debt
- Provide immediate protection with a stay of proceedings by filing a consumer proposal or an assignment in bankruptcy
- Advise what amounts are payable under the statute
- Be less expensive than using a tax lawyer because in many cases the trustee doesn’t charge a fee over and above what the statute requires to be paid
- Save you money because the actual amount required to settle may be higher than what debts could be settled for in a bankruptcy or consumer proposal
- Offer you a free consultation while a tax lawyer requires a sizable retainer
There are a few cases in which you may want to consult a tax lawyer in Canada:
- Your debts chiefly or only involve CRA
- You are not insolvent
- CRA has registered liens on your property (bankruptcy does not remove liens)
- Communication between you and your tax lawyer is privileged; a trustee must seek and make full disclosure
- You can avoid a bankruptcy filing and use the “open kimono” on all of your conduct and transactions
- You are being prosecuted by the Department of Justice in relation to your tax reportings and therefore do require a lawyer
If you’re experiencing serious debt issues, including tax problems with the CRA, contact Ira Smith Trustee & Receiver Inc. for a no cost, no obligation consultation. Take the first step towards living a debt free life Starting Over, Starting now.