CRA Collections & Enforcement Help
CRA Enforcement Actions Help for Garnishments and Collections
A collections call, a letter about legal action or a garnished account feels urgent, because it is. We read what the Canada Revenue Agency (CRA) has sent, explain what it can and cannot do, contact the CRA for you once you authorize us and work toward a payment plan you can keep.
- Garnishments, set-offs, liens, seizures and directors’ liability
- We deal with the CRA collections officer once you authorize us
- Confidential first call, with no obligation
Which paper did you get?
- A legal warning letterThe CRA’s notice that legal action can follow.
- A requirement to paySent to your bank or employer, with a copy to you.
- A certificate or lienMakes the debt public record, then a lien or seizure can follow.
Unexpected call about a balance? The CRA says to confirm who is calling and to check your balance in My Account or by phone before you act. It never asks for payment by e-transfer.
What can the CRA do if you owe a tax debt?
The CRA lists four collection actions. Open each one to see what it reaches and what you can do. They are separate tools, not stages you pass through in order.
What it is
The CRA asks someone who owes you money, or holds money for you, to send it to the CRA instead. The documents are called a requirement to pay, an enhanced requirement to pay or a demand on a third party. You are sent a copy of any request made about your debt.
What it can reach
- Pay and other income handled by an employer or another payer
- Money in your bank accounts
- Money a customer, business partner or other person owes you
- Federal payments such as CPP, OAS, federal contract payments and federal pay
What you can do
- Call the CRA collections office, or have us call, before more money moves
- Propose a payment arrangement you can keep
- Check the balance, and whether it is correct
- If you disagree with the assessment behind it, ask about an objection
What it is
The CRA applies money it owes you to the debt instead of paying it out. That includes tax refunds and credits and benefits, such as the GST/HST credit. It can do this even if you have a payment arrangement.
What it can reach
- Future income tax refunds
- GST/HST credits
- Other federal and provincial credits and benefits
- For businesses, credits on corporate tax, GST/HST and payroll accounts
What you can do
- Expect the refund or benefit to go to the balance first
- Confirm the balance in My Account so you know what was applied
- Ask us to check whether the balance is right
- Pay or arrange the debt so future refunds are not taken
What it is
First the CRA certifies the debt, through a provincial judgment or a Federal Court certificate, which makes it public record. It usually sends a letter to say so. A lien then sets the CRA’s place in line when an asset is sold, and if the debt stays unpaid the CRA can get a writ or memorial to seize and sell property.
What it can reach
- A home, cottage or rental property
- A car or boat
- Artwork and other valuables
- Business equipment
What you can do
- Act when you get the letter that the debt was certified
- Pay, or arrange payment, because the CRA removes a lien when the debt is paid
- Know that sale proceeds go to the debt and the bailiff’s costs, and anything left over is still owed
- Get advice before you sell or transfer property
What it is
In some situations the CRA can make a second person or company responsible for the debt. It mails them a notice of assessment or a letter, and the amount on it is theirs to pay.
What it can reach
- A related person who received property for less than its fair market value
- An employer or bank that ignores a garnishment
- A representative who distributes an estate’s assets without a clearance certificate
- A director, for unremitted payroll or GST/HST trust amounts
What you can do
- Keep transfers of property at fair market value and on paper
- If you got a notice as a third party, pay or contact the CRA person named on it
- Directors: take advice on deemed trust amounts early
- Send us the notice and we will explain what it means
Does the CRA have to warn you before it takes action?
Usually yes, with exceptions that matter most to businesses. These are the CRA’s own rules.
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1 + 1
verbal attempt + written letter
Before it starts legal action the CRA will generally try at least once to warn you by phone and send one written legal warning letter.
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180
days a legal warning is valid
The CRA can act at any time in that period, even if the balance changes. After 180 days without action it must give one new warning.
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0
warning for payroll and GST/HST
For payroll deduction and GST/HST remittance debts, legal action can begin right after the business is notified, and the notice of assessment counts as the written warning.
The CRA can also ask a court for a jeopardy order when it believes delay would put the debt at risk. It can apply without telling you, and must serve you with the order within 72 hours of it being granted unless the court allows more time. You can ask the court to review it within 30 days of being served, but the order stays in effect while that happens.
A large corporation that files an objection or appeal can be asked for 50% of the assessed income tax right away.
How does a garnishment actually work?
The money does not come from you. It moves from whoever holds it for you.
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The CRA issues the request
A requirement to pay goes to a third party.
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The third party receives it
An employer, bank, customer, partner or another government department.
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The money goes to the CRA
What it owes you, or holds for you, is sent to the CRA.
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The debt is reduced
The CRA applies it to your balance and sends you a copy of the request.
Because an ordinary requirement to pay needs no court order, it can arrive with little notice after the legal warning. That is why the first call to the CRA matters.
What can you do to stop or slow CRA collection?
Which option fits depends on why the money is owed. These are the ones we look at first.
Dispute the assessment
If you think the amount is wrong, a notice of objection asks the CRA to look again. Collection of the disputed amount is normally postponed until 90 days after the CRA sends its decision, though interest generally keeps building.
See how an objection worksAsk for relief
If penalties and interest are what make the debt hard to pay, and something outside your control caused them, you can ask the CRA to cancel them.
See taxpayer relief helpFile the missing returns
A debt built on a return the CRA estimated for you often shrinks when the real return is filed.
See unfiled returns helpHow does a CRA payment arrangement work?
A payment arrangement is the most common way out. The CRA sets the rules, and the rules are strict about keeping them.
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Pay on the agreed dates
You schedule the payments online or by phone, and the CRA expects them on time.
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File every future return on time
Keeping your filings current is part of keeping the arrangement.
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Call before you miss or reduce a payment
If you pay less than agreed without changing the arrangement first, the CRA may go ahead with legal action.
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Expect refunds and benefits to be applied
Even with an arrangement, some federal benefits and credits may still be applied to the debt.
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Expect a review
The CRA may review the arrangement from time to time.
How long would a payment plan take?
A rough guide from two numbers. Nothing you enter is saved.
The CRA suggests working out what you can afford to pay regularly before you call. We do that with you and take the numbers to the CRA.
Why are payroll and GST/HST debts treated more strictly?
Because the money was never the business’s to spend. The CRA treats it as held in trust.
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Payroll deductions
Income tax, CPP and EI taken from employees’ pay, plus the employer’s share of CPP and EI.
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GST/HST collected
Tax collected from customers, whether you are a sole proprietor, a partnership or a corporation.
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Priority over other creditors
The debt is secured over all of the business’s assets and comes ahead of other claims on sale proceeds, with no public registration needed.
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Directors can be personally liable
The CRA can assess a director for unremitted payroll and GST/HST trust amounts, with penalties and interest.
If you get a deemed trust claim letter, contact the CRA person named on it as soon as you can, and take legal or professional advice.
How long can the CRA collect a tax debt?
The CRA has 10 years, and that clock can restart, so waiting a debt out is not a plan.
- 10years the CRA can collect
For personal tax, corporate tax and GST/HST remittance debts.
- 91stday it starts for income tax
Counted from the day after the notice for GST/HST remittance debt.
What restarts the 10 years
- A voluntary payment or a written acknowledgment of the debt
- Proposing a payment arrangement in writing
- Filing an objection or appeal, or asking for a reassessment in writing
- A garnishment, a set-off or the CRA certifying the debt in Federal Court
What extends it
- Filing for bankruptcy or making a proposal under insolvency law
- Becoming a non-resident of Canada after a notice is issued
- An objection or appeal on a debt that has collection restrictions
- The CRA accepting security instead of payment
What mistakes make CRA collection worse?
These come up again and again, and each one is avoidable.
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1
Ignoring the legal warning letter
The warning is valid for 180 days. The CRA can act at any point in that time, so a quiet few weeks proves nothing.
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2
Paying a caller you haven’t verified
Scammers use the CRA’s name. Confirm the caller and check your balance in My Account first. The CRA never asks for e-transfers.
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3
Moving property to a relative for less than it is worth
The CRA can assess a related person who received property below fair market value, and the transfer can make things worse.
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4
Missing or cutting an arrangement payment without calling
If you pay less than agreed without changing the arrangement first, legal action can follow.
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5
Forgetting to file the next return
Keeping returns current is a condition of an arrangement, and a missed return can add new debt.
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6
Using trust money as cash flow
Payroll deductions and GST/HST are held in trust. Spending them can leave directors personally liable.
What’s included in our CRA enforcement help
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Paper reviewed
A plain answer on what you received, what it lets the CRA do and the dates that matter.
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Contact with the CRA
We speak with the collections officer for you once you authorize us.
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A realistic offer
We work out what you can pay and take a proposal to the CRA.
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Payment arrangement set up
We help set up the arrangement and keep it on track.
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Objection or relief where it fits
If the amount is wrong or the penalties are unfair, we prepare the request.
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Missing filings caught up
Unfiled returns and unremitted amounts are dealt with so new debt stops building.
What stays with the CRA
The CRA decides what action it takes, what payment arrangement it accepts and when collection pauses. No one can promise how it ends. What we promise is accurate numbers, honest advice and a call to the CRA made for you, not by you.
How much does CRA enforcement help cost?
Every collection case is different, so we quote each one individually, and you will know what we charge before we start. Here is what shapes the quote.
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Size of the debtOne balance, or several accounts.
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Action takenA warning letter, or a garnishment or lien.
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Who owes itAn individual, a business or a director.
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Years involvedOne year, or several unfiled.
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State of your recordsComplete, partial, or mostly gone.
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TimingPlenty of time, or money already moving.
- Free, no-obligation consultation
- Clear quote agreed before we start
- No hidden fees or surprise billing
Prefer to talk it through first? Call us, or send a quote request.
Call (437) 421-7171 Request a QuoteCRA enforcement help across Canada
Get directionsMeet us in person at any of our four offices, or work with us by phone and video. The CRA deals with us through its secure services and by phone, so we can help wherever you live in Canada.
Outside Ontario or Alberta? We can still help.
Ask about your debt
If you live in another province, or you are living abroad with a CRA debt, we work with people across Canada by phone and video.
What our clients say
View other testimonials★★★★★
“I have been returning to Lira Tax and Accounting Inc. for the past 3 years, and their service has always been excellent. Most recently, I had an issue with the CRA and was placed with a collections agency regarding several years of tax matters.
Razu provided expert advice, represented me professionally, and worked diligently to resolve 4 years' worth of tax issues. Thanks to his knowledge and guidance, the matter was resolved swiftly, and the CRA even issued me a refund cheque—something every honest taxpayer appreciates. :) I highly recommend Lira Tax and Accounting for anyone needing reliable and knowledgeable tax support. Thank you so much!”
★★★★★
“I have been to number of accountants for my multiple business ventures, however i found Mr. Razu from Lira Tax and Accounting to be one of the better ones. He is very informative and easily accessible. He is always answering calls and helping small business owners to do their taxes properly. I highly recommend.”
★★★★★
“A friend recommended me Lira tax for my personal and corporation tax and it was done perfectly. Excellent service. If you think of someone to do your taxes, I recommend Lira tax 100%”
CRA enforcement FAQs: garnishments, liens, warnings and payment plans
Straight answers to what people ask us after collections calls and letters.
They are the ways the CRA collects a tax debt that has not been paid. The CRA lists four: garnishing income and accounts, making another person or company also responsible, putting a lien on or seizing assets, and applying refunds and benefits to the balance.
Usually, yes. Before legal action the CRA will generally try at least once to warn you by phone and send one written legal warning letter. For payroll deduction and GST/HST remittance debts, legal action can begin right after the business is notified, and the notice of assessment counts as the written warning.
180 days. The CRA can act at any time in that period, even if the balance has changed. If the 180 days pass without legal action, the CRA has to give one new warning, verbal or written.
For a tax debt, a requirement to pay generally does not need a court order. The CRA sends it to your bank or other third party, which sends the money to the CRA, and you are sent a copy. Other collection actions, such as a lien or seizure, follow the CRA certifying the debt first.
Yes. The CRA can apply refunds, credits and benefits, such as the GST/HST credit, to what you owe. It can do this even if you have a payment arrangement.
It can, but not at once. First the CRA certifies the debt through a provincial judgment or a Federal Court certificate, which makes it public record, and it usually sends a letter to say so. A lien then protects the CRA’s place when an asset is sold, and if the debt stays unpaid the CRA can seize and sell property. A lien is removed when the debt is paid.
In some situations. Examples are a related person who received property from you for less than its fair market value, an employer or bank that ignores a garnishment, a representative who hands out an estate without a clearance certificate, and a director of a corporation with unremitted payroll or GST/HST trust amounts.
It is the usual way to avoid legal action, but only while you keep to it. You must pay on the agreed dates and file future returns on time. If you pay less than agreed without changing the arrangement first, the CRA may go ahead with legal action, and some benefits and credits can still be applied to the debt.
Call before you miss or reduce a payment, because the CRA says you must call to change an arrangement. We work out what you can afford, take the proposal to the CRA and, where penalties and interest are the problem, look at asking for relief.
Normally the CRA postpones collecting the disputed amount until 90 days after it sends its decision. There are exceptions, such as amounts withheld and remitted or amounts in jeopardy, and a large corporation must pay 50% of the disputed income tax. Interest generally keeps building.
For personal tax, corporate tax and GST/HST remittance debts the CRA has 10 years from the start date. Many things restart the period, including a payment, a written acknowledgment of the debt, a payment arrangement proposed in writing, an objection, a garnishment or a set-off.
Payroll deductions (income tax, CPP and EI) and GST/HST collected from customers are held in trust for the government. The debt is secured over all of the business’s assets and comes ahead of other claims on sale proceeds, and directors can be assessed personally.
A court order that lets the CRA collect immediately when delay would put the debt at risk. The CRA can apply without telling you. It must serve you within 72 hours of the order being granted unless the court allows more time, and you can ask the court to review it within 30 days of being served.
Do not pay on the call. Confirm who is calling, and check your balance in My Account or by phone. The CRA never asks for payment by e-transfer.
We quote each case after a free consultation, because a single balance and a multi-account debt are very different. You will know the cost before we start.
Official sources we check
We confirm the rules on the CRA’s own pages. You can read them too:
- If you don’t pay your debtcanada.ca (opens the official site in a new tab)
- Garnishing your income and accountscanada.ca (opens the official site in a new tab)
- Putting a lien on or seizing your assetscanada.ca (opens the official site in a new tab)
- Making another person or entity responsible for your debtcanada.ca (opens the official site in a new tab)
- Information on deemed trustcanada.ca (opens the official site in a new tab)
- Payment arrangementscanada.ca (opens the official site in a new tab)
- How long a debt can be collectedcanada.ca (opens the official site in a new tab)
- Collection of tax debts in jeopardycanada.ca (opens the official site in a new tab)
Checked against these pages in October 2026. Rules and programs change, so we confirm the current position for your situation before we start. This page is general information, not legal advice.
Related services for fixing a tax problem
View other servicesNotice of Objection Help
Disagree with the amount? Object before the deadline.
Learn moreTaxpayer Relief Requests
Ask the CRA to cancel penalties and interest that weren’t your fault.
Learn moreUnfiled Tax Returns
File the years you missed and get current.
Learn moreCanadian Payroll Services
Payroll remittances made correctly and on time.
Learn moreGST/HST Registration
GST/HST returns and remittances, kept current.
Learn moreAccounting & Bookkeeping
Clean books so the numbers you give the CRA are right.
Learn moreGuides on CRA and tax filing
How to File Unfiled Tax Returns in Canada: Complete Guide
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Read the guideGot a CRA collections letter or call? Let’s deal with it first
Book a free consultation. Bring what the CRA sent and we will tell you what it means, what can happen next and what to do first, with no obligation.
