Friday, November 6, 2009

If I owe tax debt to the Ontario Ministry of Finance, will collection stop if I pay half of it?

What is the collection procedures for tax debt in Ontario? Can I prevent the collection procedures from beginning if I pay half of the assessment amount? I heard that either the Canada Revenue Agency or the Ontario Ministry of Finance will not start the collection procedure if you pay half the amount owe.

If I owe tax debt to the Ontario Ministry of Finance, will collection stop if I pay half of it?
The only way to find out is to put a call into whatever address you have where payment has to be made. Don't ask questions of people who dont know the answer. Just go to the source.
Reply:To comment on another post, neither the Province nor CRA uses "collections agencies"; both have in house collectors.





I'd recommend contacting them as soon as possible. If you offer to pay half, they'll accept it, but will also want to know how the remainder will be paid. They will not accept a payment of half and just leave you alone, as they are not able to do so. What you should do is contact the Ministry of Finance directly and try to come to a payment arrangement with them. Be prepared to disclose your personal information such as assets, other liabilities, income and expenses.





Here is a link with the contact information for the Province:





http://www.fin.gov.on.ca/english/about/c...





If you have a notice from them about your debt, I'd use that number instead.
Reply:I think a lot of it depends on what stage you catch it in. If you can catch it before they sell the debt to a collection company, the province/CRA may have more lenient policies than a collection company.





Either way, I wouldn't expect an easy way out of it. When you the gov't money for taxes, they will take it out of anything that you may be entitled to.





ie, If you owe them 5000 and you have a refund coming this year to you for lets say 3500. You won't get your refund and they will apply that 3500 to your outstanding debt.





The best thing to do is contact them and work out some repayment plan. Just simply ignoring the problem makes the problem worse. Make sure you get to the collections department and not someone just on the front line.


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