CRA suspends new debt collection to prevent financial hardship

The Canada Revenue Agency (CRA) has suspended debt collection due to the fallout from the Covid-19 outbreak.

The federal tax agency has stopped collection on new debts “until further notice,” and said it will allow flexible payment arrangements.

“Collections staff will address pre-existing situations on a case-by-case basis to prevent financial hardship,” it said.

The CRA also said that taxpayers prevented from making payments, filing returns on time, or complying with other tax obligations due to circumstances beyond their control “can submit a request to cancel penalties and interest.”

“Payment arrangements are also available on a case by case basis if you can’t pay your taxes, child and family benefit overpayments, Canada Student Loans, or other government program overpayments in full,” it said.

The federal government has already pushed back the income tax filing deadline to June 1, and allowed taxpayers who pay by instalments to delay their payments.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.