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I Unlocked The Secret of The CRA. It Is Illegal For The CRA To Take Your Money From The Bank

Updated: Jul 21

Authority to Take Money from Bank Accounts:

  1. Income Tax Act (ITA):

  • Section 224 allows the CRA to issue a Requirement to Pay (RTP) to a third party, such as a bank, requiring them to pay money owed to the CRA by the taxpayer. This can include seizing funds from the taxpayer's bank account.

  • Section 231.2 provides powers for the CRA to demand information and documents related to taxpayers, including bank records, which supports their ability to identify and collect unpaid taxes.

  1. Excise Tax Act (ETA):

  • Similar to the ITA, the ETA grants authority under Section 317 for the CRA to issue an RTP to collect unpaid goods and services tax (GST) or harmonized sales tax (HST).



Protection Against Frozen or Emptied Bank Accounts:


While the CRA has significant powers to collect taxes, there are also safeguards in place to protect individuals from undue hardship:


  1. Judicial Authorization:

  • According to Section 231.2(3) of the ITA and Section 323(3) of the ETA, before taking enforcement action (such as seizing funds from a bank account), the CRA must apply to a judge for judicial authorization. This provides a check against arbitrary actions and ensures that the CRA's actions are justified.

  1. Notice to Taxpayer:

  • The CRA is required to provide advance notice to the taxpayer before taking collection actions. This notice typically outlines the amount owing and the CRA's intention to collect it.

  1. Rights of Review and Appeal:

  • Taxpayers have the right to dispute assessments through objection and appeal processes provided by the CRA. These processes allow taxpayers to challenge the amount owing and provide an opportunity to resolve disputes before enforcement actions are taken.

  1. Hardship Provisions:

  • The CRA recognizes situations of financial hardship and may consider arrangements such as payment plans to accommodate taxpayers who are unable to pay their full tax debt immediately. This can help prevent aggressive collection actions like bank account seizures.


  • File An Objection


Conclusion:

The CRA's ability to take money from an individual's bank account is primarily governed by Sections 224 and 231.2 of the Income Tax Act and Section 317 of the Excise Tax Act. These sections outline the authority for the CRA to issue Requirements to Pay and seize funds to satisfy tax debts.


However, these powers are balanced by safeguards such as judicial oversight, advance notice to the taxpayer, rights of review and appeal, and provisions for addressing financial hardship. These protections are designed to ensure that taxpayers are treated fairly and that the CRA's enforcement actions are reasonable and justified.


For more information on litigation with the CRA:



Office - of The DOJ


Edmonton - 780.495.2983 Open from 7am to 4pm Mountain Time


Toronto - 416.256.1663 Open from 9am to 5pm Eastern Time


HOW TO SUBMIT A COMPLAINT ABOUT CRA STAFF:






GST APPEALS


File a GST/HST objection through your representative

You can have your authorized representative file a GST/HST objection on your behalf. They can use Represent a Client and select “Register my formal dispute” (notice of objection).


File a GST/HST objection by mail or fax


To file a GST/HST objection, print and complete Form GST159, Notice of Objection (GST/HST) and mail or fax it to the Chief of Appeals at your Appeals Intake Centre.

You can send your objection to the Appeals Intake Centre at the following address:


Chief of Appeals

Appeals Intake Centre

1050 Notre Dame Avenue

Sudbury ON P3A 5C1


Fax numbers:

705-670-6649 or 1-866-443-4955

604-587-2672 or 1-866-489-6832


Website:

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