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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 12686
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have overdue GST payments to make to CRA and I am

Customer Question

I have overdue GST payments to make to CRA and I am wondering if they will accept postdated chques over 24 months?
Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.

Hi,

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Yes, you may qualify for what CRA calls a payment arrangement

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See this from CRA:

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A payment arrangement is an agreement that some taxpayers and businesses enter into with us, which allows them to make smaller payments over time until they have paid their entire debt. If the CRA determines that you cannot pay your debt in full, we can work with you to develop a repayment plan.

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To help us determine your ability to pay, you may have to make full financial disclosure and give evidence of your income, expenses, assets, and liabilities either by telephone or by completing a financial questionnaire supplied to you by a collections officer.

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If you fail to make the agreed payments or don't otherwise keep your account up to date, we may cancel the arrangement and take legal action to recover any outstanding amount.

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here's the payment arrangements page: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/pymnts/rngmnts-eng.html

Please contact us to discuss your debt, as it is much easier for both you and the CRA to work out an acceptable repayment plan than it is to deal with any collection actions taken as a result of avoiding the issue.

Expert:  Lane replied 1 year ago.

From there:

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There are a number of ways that you may be able to make a payment arrangement.

You may be able to set up a pre-authorized debit agreement through My Account.

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You can call our TeleArrangement service at 1-***-***-****. To use this service, you will need to provide your social insurance number, your date of birth, and the amount you entered on line 150 from your last return for which you received a notice of assessment. TeleArrangement is available Monday to Friday, from 7 a.m. to 10 p.m., Eastern time.

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You could also call our debt management call centre at 1-***-***-**** to speak to an agent. Our agents are available Monday to Friday (except holidays) from 7 a.m. to 11 p.m., Eastern time.

Expert:  Lane replied 1 year ago.

Hope this has helped … let me know if you have questions

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If this HAS helped, (and you don’t have additional questions on this), I'd really appreciate your positive rating … (by using the stars or rating request on your screen) … … That’s the only way I'll be credited a portion of what you've paid JustAnswer.

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Thank you,

Lane

Customer: replied 1 year ago.
Hello Lane,
To further clarify my situation, I have GST owing over last three years, I have been making payments but irregularly. The CRA representative I have been chatting with, unfortunately did not heed my request to not call me at home (did not want my wife bothered by my business issues) but she did and that was a bad issue unto itself but the main thing is "I do owe the money and I agree to pay" just that the CRA Agent said in last phone call she would like me to make 12 Payments of $775 but I cannot afford that and want to call her and say I will send her 24 post dated cheques for $387.40. My question is, do you think she will agree to 24 months as opposed to 12 months?
Jim
_________________________________
D.J. (Jim) Wooley
Pie Communications Inc.
310, 9768-170 Street
Edmonton, Alberta T5T 5L4
Bus:(###) ###-####Fax:(###) ###-####
www.PieCom.ca
Expert:  Lane replied 1 year ago.

My best speculation is that, given this new information, you would need to come prepared with documentation that payments at that level would cause an undue hardship.

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The kinds of things that are acceptable are bank statements, asset listings, P&L statements from the business etc.

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If you (1) offer those up as documentation that you simply cannot afford the payment at that level and (2) can show a CHANGE in your situation from good to bead (financially) or bad to worse, this is where I've seen these go through.

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But you MUST show reasonable cause for not sticking with previous arrangements ... and showing a worsening financial condition is the most acceptable rationale for that.

Customer: replied 1 year ago.
Thank you.
Expert:  Lane replied 1 year ago.

You're very welcome ... Your positive rating … (by using those the stars or rating request on your screen) … is thanks enough! … That’s how we’re credited for the work here

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Thank you,

Lane

Expert:  Lane replied 1 year ago.

Hi,
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I’m just checking back in to see how things are going.
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Did my answer help?
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Let me know…
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Thanks
Lane