Proposals for Professionals and Business Owners
Many Professionals and Business Owners find themselves in difficulty with unpaid income tax arrears due to unforseen circumstances, often as a result of matrimonial issues or other unforseen difficulties that seriously impair one’s ability to meet obligations. Energy and resources focussed on professional life and resolving difficult life changing events like divorce, separation or similar events can distract one from other important issues such as filing and paying income taxes in a timely manner.
When matters with Canada Revenue Agency (CRA) get difficult, we can help you to assess your situation, address controllable issues such attending to filing income tax returns, and work with you to move forward with strategies to help pay your creditors in full, or on part.
Many persons with large CRA obligations want to meet those obligations but cannot do so with large accumulated penalties and interest on top of the actual tax due. If long periods of time have passed, it may not be possible to negotiate directly with CRA representatives because of internal collection policy within CRA. CRA also want you to pay your obligations, and as long as CRA is satisifed you have acted in good faith, they may be prepared to negotiate a Division I Proposal under the Bankruptcy & Insolvency Act. While there are pros and cons in attempting a Division I strategy, if it is approved by your creditors (by special resolution of majority in number and 66.66% in value voting), it is legally binding on you and your creditors.
If some or all of the above sounds familiar with your situation, we suggest you contact us to review whether a Division I Proposal will meet your needs, and learn more about this remedy that can allow you to pay what you are able to pay, and stay out of bankruptcy and the consequences of bankruptcy.
We will work with you and your insolvency counsel to develop and implement a workable Divsion I Strategy to address your concerns.