Insights
Oct 24, 2025
Mackisen
CRA Wage Garnishment 2025 — Stop CRA From Taking Your Pay and Reclaim Your Income
A CRA wage garnishment is one of the most aggressive enforcement tools the government can use — and in 2025, CRA’s automated system can seize your pay directly from your employer within hours. Once a garnishment order is issued, CRA can legally take up to 50% of your wages (and up to 100% for contract income) until your tax balance is paid. Employers are required by law to comply, leaving you with little notice and even less income.
But wage garnishments can be stopped, reversed, and replaced with manageable payment arrangements — if you act fast. At Mackisen CPA Auditors Montreal, our CPA auditors and tax lawyers intervene immediately to stop CRA’s enforcement, negotiate affordable repayment terms, and protect your financial stability. We don’t just stop garnishments — we restore your control over your income and your peace of mind.
We protect your paycheck, your rights, and your future.
Legal and Regulatory Framework
Income Tax Act (Canada)
Section 225.1: Gives CRA the authority to issue a Requirement to Pay (RTP) to employers, forcing them to remit part of your salary.
Section 222: Treats unpaid taxes as a civil debt recoverable by enforcement.
Section 161(1): Adds daily compounded interest to any unpaid balance.
Section 220(3.1): Allows for penalty and interest reduction under the Taxpayer Relief Program.
Tax Administration Act (Quebec)
Revenu Québec has equivalent authority to garnish wages and contract income but permits payment arrangement requests under financial hardship conditions.
Mackisen negotiates directly with both agencies, ensuring coordinated protection from multiple enforcement actions.
Key Court Decisions
Jordan v. The Queen (2009): CRA must follow due process and notify taxpayers before initiating garnishment.
Browne v. The Queen (2022): Hardship can justify reduction or suspension of enforcement.
Guindon v. Canada (2015): Taxpayer relief provisions can reduce or eliminate penalties and interest associated with garnishment.
Venne v. The Queen (1984): CRA enforcement remains valid unless formally disputed through objection or appeal.
These rulings make one thing clear: CRA’s actions can be stopped when handled strategically and professionally.
Why CRA Garnishes Wages
CRA uses wage garnishment when it believes you won’t pay voluntarily or when no payment plan is in place. Common 2025 triggers include:
Ignoring CRA’s collection letters or payment demands.
Outstanding balances after audit reassessments.
Missed or defaulted payment arrangements.
Unpaid payroll, GST/HST, or income tax obligations.
Repeated failure to file returns on time.
Once an RTP is issued, your employer must comply or face penalties themselves. That’s why speed and expertise are crucial to protect your paycheck.
Mackisen’s Wage Garnishment Defense and Recovery Strategy
Immediate Contact with CRA: Stop garnishment orders before your next payroll cycle.
Balance Verification: Review and confirm CRA’s calculations to ensure the debt is accurate.
Negotiated Payment Plan: Propose a fair, affordable arrangement to replace the garnishment.
Taxpayer Relief Request: File to remove accrued penalties and interest under hardship grounds.
Long-Term Compliance Support: Set up structured tax filing and installment systems to prevent future CRA enforcement.
Our rapid-response process stops CRA within days — restoring your financial breathing room.
Real Client Experience
A Montreal nurse had 45% of her paycheck garnished due to a $24,000 CRA balance. Mackisen intervened within 48 hours, stopped the garnishment, and secured a 24-month payment plan with full interest relief.
A Quebec contractor lost access to client payments after CRA issued RTPs to his business partners. Mackisen negotiated directly with CRA, had the garnishment lifted, and reduced the debt by over $18,000.
Common Questions
Can CRA take my entire paycheck? They can take up to 50% (or 100% for contract income), but Mackisen can stop or reduce this through negotiation.
Can CRA garnish without notice? Yes — but we can file immediate intervention requests to pause or reverse it.
Can I negotiate a new payment plan? Absolutely. Mackisen prepares compliant repayment proposals that CRA accepts.
What if I work for multiple employers? CRA can garnish from all of them — we ensure one manageable payment plan replaces all actions.
Why Mackisen
At Mackisen CPA Auditors Montreal, we know that every paycheck matters. Our firm moves fast to stop CRA garnishments, rebuild your compliance, and secure affordable repayment terms. With a proven record of reversing enforcement orders across Canada, we defend your rights with skill, precision, and empathy.
We don’t just stop CRA from taking your money — we help you rebuild financial confidence.
Call Mackisen CPA Auditors Montreal today for your 2025 CRA Wage Garnishment Relief Consultation. The first meeting is free, and your protection starts immediately
