5 things NOT to do when you owe tax.

1. Don’t transfer title of the house to your spouse. That can transfer your tax debt, too.
2. Don’t rush to set up a new company. You may create a new set of tax problems without solving the old ones.
3. Don’t run to an insolvency trustee. Often there are ways to manage the tax debt without going bankrupt. Insolvency won’t wipe out a lien on your home, and you can end up stripped of your assets… because the trustee works for the best interest of the creditors (and the Taxman), not you.
4. Don’t wait until the problem gets critical. It’s better to stop the CRA before they go after your bank account, your wages, or your house.
5. Don’t expect an accountant, an ex-CRA agent, a tax solutions specialist, or an insolvency trustee to have the best answers. In most cases, they work to satisfy CRA process, instead of standing up for you. And beware of tax solutions firms or tax law firms with the same name as an insolvency firm. That’s a clear indication that their tax solution is a feeder strategy for the insolvency trustee. It may also be a conflict of interest.