If you have had your bank account frozen by CRA through a
Requirement to Pay and are wondering how they found out where you bank, well it
is far easier then you may think.
Here are the top 3 ways that CRA can find out where you
bank:
1.
Through your payments to them: Any time you send a payment to CRA (even
if it is a joint account), they will obtain your banking information which they
can use against you at a later date. Even if you have a joint account, CRA can
still issue a Requirement to Pay and freeze it at any point in time.
2.
Through a financial disclosure statement: When CRA agents initially
contact you to collect a debt, they will appear open to making a repayment
arrangement with you. They may allow you to make a short term payment plan that
you can afford, in exchange for a financial disclosure statement. The financial
disclosure statement will require you to disclose where you bank.
3.
Through the “shotgun” approach: In Canada there are only 5 main banks –
Royal Bank, TD Canada Trust, Bank of Montreal, Scotia Bank and CIBC. CRA can
simply send a letter to all the 5 banks’ head offices to inquire as to whether
or not you have an account there.
If you owe money to CRA and know that you cannot pay in full
and will need to make a monthly payment arrangement, you are going to have to
take action to protect yourself if you don’t want them to obtain your banking
information.
Owing money to CRA is no fun at all. Your best chance at
being successful is to understand that you are dealing with a massive
bureaucracy that has immense powers under federal law and infinite resources
all designed to collect from taxpayers. You are going to have to be extremely
careful about each and every interaction you have with them, and keep
interaction with them at a bare minimum if you want to avoid life-altering enforcement
action.
For more information about how to avoid having your bank
account frozen or to discuss a tax problem, please visit www.taxsolutionscanada.com or call
1-888-868-1400.
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