CRA Garnishments: Requirements to Pay Tax—A Canadian Tax
Lawyer Analysis
Requirements to Pay Tax: Garnishment For Unpaid Tax
Assessments
When a tax debtor cannot afford to pay their Canadian tax
assessment within a reasonable timeframe, CRA will not hesitate to
collect the debt from someone else. CRA has a variety of tools at
its disposal that allow it to collect tax debts from third parties.
This article focuses on garnishments, called "requirements to
pay" or RTPs, which CRA issues to third-parties associated
with a tax debtor. RTPs allow CRA to demand that any third party
that owes funds to, or is holding funds for, a tax debtor to
instead pay the funds directly to CRA to the extent of the tax
debt. Essentially, a tax requirement to pay allows CRA to put
itself in the shoes of the tax debtor with respect to debts owing
to the tax debtor by third parties, without the need for a court
order. If you have been
garnished by CRA, our Toronto tax lawyers can
