Can’t Pay Your Tax Bill 2025

Falling behind on taxes can happen to anyone. A slow business year, unexpected illness, or economic downturn can leave even the most responsible Canadians owing more than they can afford. But in 2025, CRA and Revenu Québec’s collection powers are stronger than ever—they can freeze your bank accounts, garnish your wages, and seize refunds without notice. Ignoring your tax debt is the worst decision you can make. Acting fast is the only way to protect your income and your reputation.

The CRA treats unpaid taxes as a legal debt. Once your balance becomes collectible, the system automatically initiates enforcement actions. However, the CRA is often willing to negotiate payment plans, interest relief, or partial settlements if you demonstrate cooperation and financial hardship. That’s where professional representation makes the difference.

At Mackisen CPA Auditors Montreal, we act immediately to stop CRA and Revenu Québec collections, negotiate fair payment arrangements, and prevent legal escalation. Our team of CPAs and tax lawyers builds strategic solutions that protect your income, restore compliance, and help you regain financial control—without fear.

Legal and Regulatory Framework

Income Tax Act (Canada)
Section 161(1): Imposes daily interest on unpaid balances.
Section 222: Authorizes CRA to take legal action to recover taxes owing (including garnishment and asset seizure).
Section 220(3.1): Allows CRA to waive penalties and interest under exceptional circumstances (Taxpayer Relief Program).
Section 225.1: Grants CRA the right to issue Requirement to Pay (RTP) orders to employers or banks.

Tax Administration Act (Quebec)
Revenu Québec has similar enforcement powers to garnish wages, freeze bank accounts, and register property liens for unpaid provincial taxes.

Mackisen works directly with CRA and Revenu Québec collection officers to halt enforcement actions and negotiate sustainable payment solutions that fit your financial situation.

Key Court Decisions

Jordan v. The Queen (2009): Interest continues to accrue until tax balances are fully paid or relief is granted.
Venne v. The Queen (1984): Taxpayers remain personally liable for all unpaid tax balances, even in hardship situations.
Guindon v. Canada (2015): CRA penalties and interest are legally enforceable unless successfully relieved or discharged.

These rulings confirm one thing: you cannot ignore tax debt—but you can manage it strategically with professional help.

Why Taking Action Matters

When you owe taxes, every day counts. CRA and Revenu Québec systems automatically escalate non-payment cases from friendly reminder calls to full legal enforcement. Once your account reaches collections, the agencies can:

• Garnish wages directly from your employer.

• Freeze your bank accounts and seize balances.

• Intercept GST/HST credits and refunds.

• File liens on property or business assets.

• Pursue directors personally for corporate tax debt.

These actions happen fast—but with proper representation, they can be stopped just as quickly.

Mackisen’s Tax Debt Recovery and Protection Strategy

1. Immediate Case Review: Assess the amount owed, enforcement actions, and available payment or relief options.

2. CRA Contact Suspension: Communicate directly with CRA and Revenu Québec on your behalf to pause or prevent collection activity.

3. Negotiated Payment Plan: Establish affordable monthly installments based on verified income and expenses.

4. Taxpayer Relief Application: File for penalty and interest cancellation in cases of hardship or CRA error.

5. Long-Term Strategy: Rebuild compliance through structured filing and planning to avoid future debt accumulation.

Our approach is focused, fast, and effective. We stop CRA from acting—and start rebuilding your financial stability immediately.

Real Client Experience

A Montreal small business owner faced a CRA bank freeze and wage garnishment for $48,000 in payroll arrears. Mackisen negotiated a structured repayment plan, lifted the freeze in 72 hours, and secured penalty relief within three months.
A self-employed consultant behind on four years of taxes owed $62,000. Mackisen filed all missing returns, arranged an affordable monthly payment plan, and prevented CRA from initiating legal collection.

Common Questions

Can CRA take money directly from my bank account? Yes, through a Requirement to Pay (RTP) order. Mackisen can intervene to release or limit the freeze.
Can I negotiate with CRA myself? Yes, but it’s risky—without professional representation, CRA may demand higher payments than you can sustain.
Will interest keep adding up? Yes, daily interest continues until the debt is resolved or relief is approved.
Can tax debt ever be forgiven? Yes, in some cases through the Taxpayer Relief Program or bankruptcy proceedings. Mackisen evaluates every option.

Why Mackisen

At Mackisen CPA Auditors Montreal, we believe financial setbacks should never define your future. Our experts have helped hundreds of clients stop CRA collections, reduce penalties, and regain control of their finances—often within days. We combine legal precision, negotiation skill, and human compassion to achieve fast, sustainable results.

We don’t just manage debt—we solve it, permanently.

Call Mackisen CPA Auditors Montreal today for your confidential 2025 Tax Debt Resolution Consultation. The first meeting is free, and your protection begins immediately.