Get Tax Collection Administration Tax Collection Procedures

Taxes are made up of direct and indirect taxes. Direct taxes mainly refer to taxes on income while indirect taxes are on consumption and international trade. Tax payment methods are withholding, installment and assessment.

We can apply to the Federal Court or the superior court of a province for a jeopardy order. This allows the CRA to take immediate legal actions to collect the debt. For GST/HST remittance and payroll deduction debts, the notice of assessment or reassessment is considered the written legal warning for amounts owing.

Canada's tax system is based on the self-assessment principle. This means you must do your own taxes every year to find out if you have a balance owing or if you will receive a refund. That's correct. Canada's tax system is based on the self-assessment principle.

Canada Revenue Agency - Canada.ca.

The federal government collects personal income taxes on behalf of all provinces and territories. It also collects corporate income taxes on behalf of all provinces and territories except Alberta. Canada's federal income tax system is administered by the Canada Revenue Agency (CRA).

The federal government's Goods and Services Tax (GST) and provincial governments' Provincial Sales Tax (PST) are both applied to the majority of goods and services consumed in Canada. In some provinces, the GST and PST are combined to form a Harmonized Sales Tax (HST). In other provinces, there is no PST.

CRA has the right to garnish up to 50% of a debtor's wages if the debtor is employed and up to 100% of the debtor's income if the debtor is a contract worker. Self-employed debtors who bill their clients directly can have 100% of their income directed to the CRA in order to pay off their outstanding tax debts.

Federal taxes are collected by the Canada Revenue Agency (CRA). Under tax collection agreements, the CRA collects and remits to the provinces: provincial personal income taxes on behalf of all provinces except Quebec, through a system of unified tax returns.