Tax Collection : Tax tips
CRA third party demand
CRA (the Canadian income tax department) has the right to serve third party demands, without a court order, on debtors or potential debtors of a taxpayer who owes money to CRA. If you receive such a third party demand you must make payments directly to CRA, and not to your creditor.
CRA can claim dividend from shareholder
If a corporation has unpaid corporate income taxes, and a dividend was paid, then the Canada Revenue Agency (Canadian income tax department) can claim that dividend from the shareholder who received it using subsection160(1) of the Income Tax Act.
Credit checks without notifying the taxpayer
The Canada Revenue Agency (Canadian income tax department) conducts credit checks without notifying the taxpayer in cases where a tax return has been filed prior to the due date and is shows a large balance owing.
CRA employees do not have the right to enter taxpayer premises, home or business, without a search warrant
Canada Revenue Agency (the Canadian income tax department) employees do not have the right to enter taxpayer premises, home or business, without a search warrant. If they do show up a taxpayer does not have to admit them or speak to them. If they refuse to leave the police can be called to remove them.
CRA can seize your assets if you do not pay the amount assessed or file a Notice of Objection
If you are assessed for income tax by the Canada Revenue Agency (the Canadian income tax department) and do not pay the amount assessed or file a Notice of Objection, CRA can seize your assets, including your bank account, without a court order.
Quarterly income tax installments, if you have an income tax balance owing
If you have an income tax balance owing you may have to make quarterly income tax installments. If you fail to do so you will charged arrears interest.
Assessment for transfers between spouses does not apply to payments by a spouse for reasonable living expenses of the family
In the recent Tax Court of Canada decision in Yates v The Queen 2007 TCC 498 the court affirmed that an assessment for transfers between spouses under subsection 160(1) of the Income Tax Act does not apply to payments by a spouse for reasonable living expenses of the family.