A real mess with the CRA

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A real mess with the CRA
« on: November 27, 2014, 11:51:26 PM »
I am considering bankruptcy and will be meeting with a trustee next week to go over options. I haven't filed taxes since 2008 and since 2010 I have been self employed. I did do a few jobs in 2009 but nothing major. Before 2009 I had a decent job as a truck driver and had home painting experience. Then in January of 2009, my wife was killed by a hit and run driver and that was when things went south with debt. I was devastated and found I couldn't drive commercially any more. Even driving in my personal vehicle was tough enough. Just the thought of how easy a life can be taken was just too much for me. Better now but it is 2014.

So in 2010-2011, I started a painting business and my parents paid for the paint and some of my bills so I could get by. In 2012, I received an insurance settlement of $120,000 and from it I paid off some debts, paid back my parents and bought a mobile home for $30,000. I looked at my taxes and became overwhelmed so I kept putting it off. The money from the settlement is now gone. (I drank alot too). I planned to catch up this year but I lost the box with all my receipts! Now the CRA has sent me 7 Second Request to File letters from 2009-2014 and 2004 and 2005 (not sure why those were not filed) and I know I will get creamed in extra tax money because I don't have much in proof of expenses.

I can bumble through my bank statements and I have my paint account summaries to do taxes for 2011-2013 but I don't have ANYTHING for 2009 and 2010. Reason being, that my bank closed my accounts due to an NSF cheque for $1800 that was overdrawn on my account in 2010.

For 2012-2013 I have over $40,000 in sales so I know the CRA is going to nail me with GST which is a nightmare in itself with penalties.I am GUESSING that with back taxes and GST I will get nailed for that the debt will be almost $50,000 something I haven't a hope of paying.

My credit score when my wife died was 705 and in 2010 it hit 490 (very bad). I have managed to get it up to 605 now but it won't be enough to get a loan to pay this money.

Has anyone else dealt with not being able to get the information to file proper taxes? I don't want to have to guess and be nailed with an audit in a few years and be hit with an even bigger tax bill after doing a consumer proposal or bankruptcy now.

Any suggestions are greatly appreciated.



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Re: A real mess with the CRA
« Reply #1 on: November 28, 2014, 08:21:44 PM »
Before you make a decision, you might want to talk to the CRA. You might not be able to pay them now, but usually they can be reasonable if you respond. Once they start a garnishment or put a lien on your property you are (in my opinion) screwed. My concern about doing a proposal immediately would be that you don't know how much you owe, and CRA can be sticky if they're approving a proposal and they don't know how much debt they're looking at.


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