Are you experiencing tax problems with Canada Revenue Agency (“CRA”)? If you are burdened with serious debt problems, CRA may be only one of several creditors that you have to deal with.
You may see advertisements from tax lawyers trying to scare you into believing that you need their services to deal with CRA debt, however; consulting with a Licensed Insolvency Trustee (“LIT”) may be a much better option for you. CRA isn’t looking to prosecute you; they are looking to collect money and an LIT is usually your best option for dealing with debt.
Why use a Licensed Trustee instead of a tax lawyer? An LIT can:
- Provide you with a full financial appraisal of your situation;
- Deal with all of your debts while a tax lawyer only deals with your CRA debt; the rest remains;
- Advise you on insolvency alternatives which include Division I proposal or consumer proposals , credit counseling and debt consolidation and, as a final option, bankruptcy;
- Provide immediate protection with a Stay of Proceedings by filing a Division I Proposal, 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 LIT doesn’t charge a fee over and above what the Bankruptcy and Insolvency Act requires to be paid;
- Save you money because the actual amount required to settle using a lawyer may be higher than what debts could be settled for in a proposal or a bankruptcy;
- Offer you a free consultation while a tax lawyer usually requires a retainer.
There are a few cases in which you may want to consult a tax lawyer:
- Your debts chiefly or only involve CRA;
- You are not insolvent;
- CRA has registered liens on your property (bankruptcy does not always remove liens);
- Communication between you and your tax lawyer is privileged; an LIT must seek and make full disclosure;
- You can avoid a bankruptcy filing and use the voluntary disclosure rules on all of your conduct and transactions;
- You are being prosecuted by the Department of Justice in relation to your tax reporting and therefore do require a lawyer.
If you’re experiencing serious debt issues, including tax problems with CRA, contact Boale, Wood & Company Ltd. at (604) 605-3335 for a no cost, no obligation consultation.
Call us, its not too late.
** Inspired by my friends and colleagues at Ira Smith Trustee & Receiver Inc.