Nothing weighs heavy on one’s shoulders than owning a home and getting behind on your Canada Revenue taxes. Most banks will not be able to help you refinance your home to pay them off as CRA has first dibs on your house and assets. We have clients owing anywhere from $5,000- $300,000 in back taxes and have threatening letters from CRA that would keep anyone up at night.
There are options and strategies we can assist with financing your CRA debts:
1: We use alternative lenders that charge higher fees/rates for a 1-year term
2: Short term 2nd mortgage to pay off your CRA debts and then refinance back with your lender.
Find out how we can help with a no-obligation application. Let a Ryan Majeau help get you back on track!
Some CRA notes on penalties for filing late:
The first time you file late you’ll pay:
- a late-filing penalty –5% of the amount of tax you owe, plus 1% for every month that your return is late, for up to 12 months. That adds up to a maximum of 17% of the tax you owe.
- interest – at the prescribed interest rate on the amount you owe, beginning on May 1. You’ll also be charged interest on any late-filing penalties. Interest is compounded daily, not monthly or annually. The prescribed interest rate can change every 3 months.
- If you miss the deadline again, the late-filing penalties are doubled. For example, if the CRA charged you late-filing penalties for any of the 3 previous years, you would pay a penalty of up to 50% made up of 10% of the taxes you owe, plus 2% of the taxes you owe for each full month that your return is late, to a maximum of 20 months.
*Contributed by Kiki of Dominion Lending Centres