CANADA REVENUE AGENCY (CRA) 

YES! THEY WILL MAKE A DEAL ON TAXES OWED!

However, if a company or an individual files a proposal under The Bankruptcy and Insolvency Act, even with CRA as a major creditor, then CRA will consider the case on its own merit and, if the proposal has merit, will support the proposal. We have filed many proposals, for companies and individuals with considerable CRA debt, where only a fraction of what is owed is paid.

It is our experience that CRA will support a Proposal so long as it has merit.

An October, 2004 Bulletin from the Canadian Association of Insolvency and Restructuring Professional (CAIRP) reported on a meeting with senior officials of CRA and the CRA policy regarding Proposals as follows:

• CRA will either reject or accept proposals based on common sense and a practical assessment of what the debtor can pay.
  

• The only exception to this policy is in the case of a strategic insolvency or the debtor has been supporting an extravagant lifestyle and has made no attempt to meet his or her tax obligations. In this case, CRA may opt for a more punitive route by bankrupting the debtor, even if the proposal appears to be more favourable, and opposing the bankrupt's discharge to attempt to obtain a higher recovery.