As we approach the start of a new year, many Canadians find themselves facing the reality of tax season. Whether it's overdue taxes or difficulties paying what you owe, it’s easy to feel overwhelmed. However, managing tax debt doesn’t have to be a daunting task. In this blog, we'll walk you through when you need to pay taxes in Canada, the consequences of failing to meet your obligations, and how Morataya Corp can help you get on the right track with your financial recovery.

Understanding the Tax Payment Timeline

In Canada, tax payments are generally due after you’ve filed your tax return. Here are the key dates to remember:

• The tax filing deadline for most individuals is April 30th, with an extension for self-employed individuals to June 15th. If you’re an employee or a business owner, your taxes for the year 2024 must be filed by April 30, 2025.
• Paying taxes can start as soon as you’ve filed your return. If you owe money, the payment is due by April 30th, regardless of whether you’ve filed on time. This means you should prepare to make payments as soon as you know your balance.

Consequences of Not Paying Your Taxes on Time

Failing to pay your taxes on time can have significant consequences. The Canada Revenue Agency (CRA) charges interest and penalties on overdue tax amounts, which can quickly add up. If you don't pay, the CRA can take more aggressive actions such as garnishing wages, freezing bank accounts, or even seizing assets. This makes it critical to address any tax debt as soon as possible.

For those struggling to pay taxes or who are dealing with outstanding balances from previous years, the pressure can feel overwhelming. This is where Morataya Corp steps in.

How Morataya Corp Can Help You Manage Tax Debt

At Morataya Corp, we specialize in providing debt solutions to Canadians facing financial challenges, including tax debt. If you're struggling to pay your taxes, we can offer you a structured plan to reduce your debt and avoid the further financial stress that can come from the CRA’s collection efforts.

Here are some ways we can help:

1. Consumer Proposal

If you owe taxes and other debts, a Consumer Proposal may be an ideal solution. This legal process allows you to make one manageable monthly payment to a Licensed Insolvency Trustee (LIT), who will negotiate with your creditors—including the CRA—to reduce the amount you owe. This could include stopping the collection actions like wage garnishments or asset seizures.

A Consumer Proposal could help you clear a portion of your tax debt in 5 years or less, without the need for loans, while protecting your assets from being seized.

2. Bankruptcy Protection

In cases where tax debt is overwhelming and other options haven’t worked, filing for Bankruptcy Protection might be the best course of action. This offers immediate relief from creditor actions, including the CRA, by discharging most of your debts and allowing you to start fresh. While it’s often considered a last resort, Bankruptcy Protection can give you the financial breathing room needed to recover.

3. Financial Counseling and Guidance

Navigating tax debt and other financial obligations can be complicated. Our team of Licensed Insolvency Trustees provides financial counseling to help you understand your options, manage your debt, and rebuild your credit. Whether you need help with creating a budget, managing your debt, or avoiding future pitfalls, we’re here to guide you.

The Importance of Acting Early

It’s essential to act quickly if you’re struggling with tax debt. The longer you wait to address your tax obligations, the more interest and penalties will accumulate, making it harder to pay off your debt. By taking action now, you can reduce the amount you owe, stop collection actions, and create a realistic plan to get back on track.

The sooner you address your tax debt, the easier it will be to regain control over your finances and avoid the stress of dealing with the CRA or other creditors.

Take the First Step Today

If you're ready to take control of your tax debt and move toward a debt-free future, Morataya Corp is here to help. Our Licensed Insolvency Trustees will assess your financial situation, explain your options, and help you create a personalized plan to reduce your debt.

Contact us today for a free consultation and take the first step toward financial freedom!

Call us at 416-784-0904 (Ontario)
Call us at 1(888) 880-0904 (Alberta - Toll-Free)

You don’t have to face your tax debt alone—let Morataya Corp help you find the best solution for your needs.