Although the Canada Revenue Agency may freeze an Ontario resident's bank account primarily to gain the delinquent tax filer's attention, three other reasons may motivate the agency to take this action. This may result from a filer's failure to respond to demands to pay, failure to file taxes or failure to cooperate with the agency. In some circumstances, asset forfeiture could result.
What happens when residents of Ontario fail to pay their taxes on time? Those who do not cooperate with the Canada Revenue Agency may be subject to asset forfeiture. The CRA has several avenues of enforcement. The legal and financial consequences can be severe, and collection action will usually not be suspended until the debts are settled in full. However, individuals who can demonstrate that they are suffering undue hardship may be able to negotiate an arrangement with the CRA.
When an individual finds him or herself in financial difficulty and creditors are trying to collect, the situation can be overwhelming. Whether it's due to mounting medical expenses, credit card debt, a sudden, unforeseen event such as a serious accident or some other reason, scores of individuals in Ontario encounter serious financial difficulties. Demanding creditors may eventually draw on wage garnishment as a means to collect on outstanding debt.
Even the best financial minds in Ontario can sometimes find themselves experiencing fiscal difficulties. Unexpected life changes cannot be prevented or even fully prepared for. When they occur, they may quickly send things in a difficult direction. However, debt relief options exist, including bankruptcy, which could be key in providing an individual facing strained circumstances with a fresh financial start.
When a high-net-worth resident of Ontario owes substantial amounts of money to the Canada Revenue Agency, situations may arise that require professional assistance. Having an experienced professional to intervene when asset forfeiture looms may be a strategic step to protect the debtor's financial interests. When a consumer challenges a tax assessment, the CRA may conclude that a risk exists that will prevent the collection of tax debt. It may then request the Ontario Superior Court or the Federal Court to issue a jeopardy order that will allow immediate action for the collection of tax debt.
When considerable assets have accumulated, considering options for protecting one's wealth is important. Individuals and businesses have a number of options to safeguard certain assets from creditors and other monetary judgements. These methods may protect assets in the event that the debtor later becomes insolvent.