How to Safeguard the Small Business Owner’s Personal Assets from CRA Collections’ Officers

Have you ever wondered how your personal assets would be affected should the CRA send you an advisory or audit for collections? Here are eleven tips that will help safeguard small business owner’s personal asset’s from CRA collections.

Never use your home address as your business address. If you have a business location outside of your house use that location. If CRA collections issues a direction to the sheriff to prepare a report of assets, the sheriff will go to the business address.

If the corporation has debts to the CRA, attempt to make a payment arrangement. A payment period of 6 – 24 months has a better chance of acceptance by CRA collections. You provide post-dated cheques for the payment period.

If a payment arrangement has been made, and the cheques issued to CRA, provide this proof to the sheriff who will include this information in their report of the assets.

Ensure there are sufficient funds in the bank account to cover the amount of the cheques. A bounced cheque forces the CRA collections officer to look for other sources to obtain the money.

Keep all CRA filings and payments up to date during the period of the payment arrangement. This includes GST/HST, payroll taxes, and income taxes, etc.

Apply for interest relief while the corporation is paying off the debt to CRA. If accepted by CRA, the outstanding balance will be decreased.

If you can make an additional large payment while paying the arrangement, this will reduce the interest on the outstanding balance.

Be honest with the CRA collections officer, whether you have nothing (or something) to hide. Do not say anything to cause the collections officer to be concerned.

Similarly, if the CRA collections officer requests information, be sure to provide it. Try to build trust with the collections officer, so that the person may show some discretion.

Be polite to the CRA collections officer. They are just doing their job.

If there is a personality conflict between the CRA collections officer and you, request a meeting with them, their supervisor and you. Attempt to improve the relationship to resolve your tax issues.

Received a notice from the CRA or have any questions? Don’t hesitate to contact us 250-744-3854!