Many Canadians are dealing with financial hardships due to Covid-19, and more and more people are struggling to pay their taxes. But what happens if you can’t afford to pay your taxes in Canada? If that is the case, read this guide and consider the three options we suggest. If adjusting your budget won’t help, it is time to talk to the CRA or a CPA directly.
Make Changes to Your Budget
Before you contact the CRA or a CPA, see if there is any way to save up additional money or generate additional income. If your financial situation is truly tough, it might be challenging to make changes to your budget. However, any amount of saving can have a noticeable impact, and by doing this, you may be able to avoid extra interest and penalties.
Communicate with the CRA
The CRA is willing to help most Canadians who need tax relief. The CRA allows partial payments, will reduce the amount of interest, and extend deadline dates for tax payments as long as you communicate with them.
The CRA may provide full relief from tax debts or interest to those who are unable to pay their taxes. You will need to submit Form RC4288, “Request for Taxpayer Relief – Cancel or Waive Penalties and Interest.”
If you are having trouble paying your taxes, one of the first things that you should do is discuss your situation with them.
Look for Professional Assistance
At NaickerCPA, one of the most common questions asked of us is, “What if I can’t pay my taxes?”. We have a wealth of experience in this area, and we provide personalized options to all of our clients.
Working with our team will help you see through tax curveballs and avoid paying high-interest rates. We have helped our clients manage their taxes for years and would be happy to help you as well. Contact us today for assistance.
If you have any questions about this article or business taxes, in general, or you want to make an appointment with an accounting professional at Naicker & Associates, please contact us at (604) 469-9369. We are based in Port Moody, BC.