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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 101375
Experience:  Lawyer
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Bank froze all my accounts (total assets over $300.000) for

Customer Question

Hi Debra, bank froze all my accounts (total assets over $300.000) for owing CRA $87.000. Is this how it usually works or did the bank crossed the legal obligations?
JA: Because employment law varies from place to place, can you tell me what state this is in?
Customer: British Columbia
JA: Has anything been filed or reported?
Customer: no
JA: Anything else you want the lawyer to know before I connect you?
Customer: I spoked to CRA last week and they agreed that if bank sends them $42.000 they will ask bank to release rest of the funds. Bank told me that they have to send $87.000. Since than nothing happened. Bank did not transfer $87.000 to CRA nor $42.000.
Submitted: 2 months ago.
Category: Canada Law
Expert:  Debra replied 2 months ago.
I am sorry to hear this. I am actually not able to correspond with you right now but I will be back online in a few hours.In the meantime, do you have anything in writing from the CRA or the bank and if so could you please attach it?It is a bank saying that the CRA froze the account entirely?
Customer: replied 2 months ago.
Letter from CRA:Pursuant to subjection 317(3) of the Excise Tax Act, you are hereby required to pay to the Receiver General an account of the above-named debtor's liability:1. fortwith, the moneys otherwise and immediately payable to the debtor, or a secured creditor who has a right to receive the money that, but for security interest an favour of the secured creditor, would be payable to the debtor;2. all other moneys otherwise payable to the debtor or a secured creditor described in (1) which you will be,within 365 days, liable to pay, as and when the moneys become payable;but do not pay hereunder more than $87,869.03 (the maximum payable)Question is why the bank froze $300.000 of my assets? Can they do that?
Expert:  Debra replied 2 months ago.

No they cannot.

They have no reason to do so and the CRA made it clear that there was a maximum that could be seized. They should remove that amount from your account and release the hold at once.

I suggest going as high up in the bank as possible on Tuesday and put them on notice that if you suffer any damages as a result of their improper seizure you will sue them.

Does that fully answer your question?

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Expert:  Debra replied 2 months ago.

Is there anything more I can help you with at this point in time?