I met with a gentleman who was anxious to file bankruptcy as soon as he possibly could. He was currently on Employment Insurance benefits, but owed taxes to CRA. He was looking for work and did not want to risk CRA garnishing his wages with any new employer. He previously worked as a sub-contractor and did not file taxes for many years. The problem being; he had not filed an income tax return since 2002.
So he really didn’t know what he owed in taxes. The amount CRA said he owed them was by arbitrary assessments raised when they didn’t get any returns from him.
We explained to him the importance of not only filing taxes on a consistent basis, but that the majority of the debt to CRA could be related to penalties and interest.
He no longer works as a sub-contractor and is looking for work as a salaried employee. He is trying to gain a hold on his financial future by working with CRA to get his tax returns all filed and up to date and reassessed so he can decide what he needs to do next.