Keeping your business on track

Transcript

This is Mike.

Like so many Canadians today, Mike owns his own business and has a group of dedicated employees.

Mike's business is a success because he works hard to stay on track. He manages– his store…

... his business plan ...

...and his taxes, too.

Mike knows that staying up to date with his tax obligations is an important part of taking care of the day to day operations of his business.

He manages his cash flow, sets aside funds to meet his tax obligations, and uses the CRA's convenient electronic payment options.

Mike knows he must not use the amounts he deducts from his employee's wages and the GST/HST he collects from his customers as cash flow for his business. It's not his money.

He holds these funds in trust temporarily until it's time to send them to the federal government.

But sometimes, Mike's cash flow isn't as good as it should be.

When unexpected expenses arise, Mike struggles to make his payments including his tax obligations.

At first, Mike tries to borrow money to make up the shortfall but his lenders turn him down.

Since he can't pay all that he owes now, Mike visits the Government of Canada website to see what options are available to him.

He's relieved to find out that the CRA offers help! In exceptionally difficult times, he may be able to pay off his debt in more than one payment. Through the CRA's My Business Account, he can conveniently set up pre-authorized payments from his bank account. This helps to relieve Mike's immediate financial pressures.

Or if Mike needs to talk to someone about his situation, he can call the CRA to speak with a representative.

Mike knows that if he pays what he owes over time, he may be charged interest until the debt is paid in full.

So the sooner he resolves his debt, the better, since he'll have to pay less interest.

Mike understands that once he's committed to a payment plan, he's got to stick with it! He also has to keep filing on time and stay up to date with his tax obligations.

By resolving his situation now, Mike knows it's less likely that the CRA will have to take firmer steps such as seizure of income or assets or other legal actions to recover the debt.

If your business has a debt with the CRA, act like Mike. Get the help and information you need to get back on track and stay there.

Find out more at canada.ca/cra-collections.