The one thing that most people in Ottawa do not know or understand is that the Canadian Revenue Agency has the power to force payment of back taxes. They do this by garnishing your wages. This happens if you have ignored their attempts to get you to file your taxes or fix a back tax issue.
The amount allowable for garnishment is up to fifty percent of your wages. Obviously this can have a damaging effect on your lifestyle here in Ottawa. This is yet another reason to ensure that you file your tax returns with the correct information by providing full disclosure of your financial status to the CRA.
What You Should Do
In case you receive a notice from the CRA, it is strongly suggested that you keep records of all communications between yourself and the Canadian Revenue Agency. All correspondence should have the contact information of those individuals who are attempting to collect the debt. The next step to take is to contact a tax professional in one of the Income Tax Ottawa offices near you so they may begin negotiations for you with the CRA.
What will take place is the tax professional will contact the CRA and tell them that the tax return in question is in the process of preparation. This will establish a timeline for the completion of the return for the CRA. Then, once the CRA receive the past due return, if they have placed a garnishment of your wages, they will remove it.
Once this is accomplished, the next step is to establish a payment plan with the CRA to pay down the debt. Nonetheless, you can see why contacting a tax professional at Income Tax Ottawa can help alleviate your issues with wage garnishment. We have the experience and knowledge in dealing with the Canadian Revenue Agency on this matter lets us help you help yourself remove wage garnishment.