Owning a corporation and revenue canada

[pilen13]

What to do when RC garnishes your business account. Well i guess today is the worst day of my life. I started with my usual routine, check balance and see what checks have cleared. Everything looked fine 30k in the account and checks cleared from previous day. Up until i notice available credit $0. WTF, i thought there was an error, so logged off and logged in. Samething, so i attended to pay a bill online. A message stated your account is on hold. I call the bank and he says there is a garnish and a demand on behalf of revenue canada. I was making partial payments up to now , however i had outstanding amounts on the payroll and hst accounts. So i call RC and give him a 3 month payment plan, this was a partial plan and figured they would be off my back and lift the garnish.
As i told the officer, how am i supposed to pay you if my account is frozen? He played stupid and said that i should come and see him.
Anyway, he goes on to say that we do not want to pursue legal, the company makes money and yoda yoda.
So i told him that i have some monies that i need to deposit and then i could make a payment proposal.
He said that they will not remove the garnmnt. So how do u expect me to pay.
? Get a personal loan , borrow , whatever rob a bank , i dont care
Wow, Im screwed. Is there any advisE

 

[pilen13]

What Can revenue canada due to a business

Can they take assets, home, receivables to a limited corporation
Any advise would be greatly appreciated

 

[anon1]

Go to a different bank and open another corporate account.

 

[Sieggo]

Go to a different bank and open another corporate account.

That might work for a little while but you can expect those funds to be taken as well at some point. The new account would show up on your credit report.

If it's gotten to the point where they're garnishing your bank account, you've likely broken an existing payment arrangement and they've decided to play hardball. It's not surprising given that they're collecting payroll and HST (trust funds you collect on behalf of the CRA).

 

[anon1]

That might work for a little while

That's all he needs it for.

 

[Sieggo]

That's all he needs it for.

I'd still be careful. His doing this may result in the CRA playing hardball sooner if he owes them money in the future. I'd suggest asking to speak to the collectors supervisor to see if there's any room to make a new payment arrangement. They may not do it but it would show that you're trying to work with them.

 

[pilen13]

Thats exactly what my $600/hr lawyer said.

 

[pilen13]

I wanna thank all of you it is greatly appreciated. But what about my dwelling.
Its owned by my wife.

 

[Sieggo]

I wanna thank all of you it is greatly appreciated. But what about my dwelling.
Its owned by my wife.

That would depend on whether or not they think the title was transferred to her in order to avoid tax collection. If it's always been under her name, it wouldn't be an issue...I think.

 

[pilen13]

Phil the coke head quoted me $18k to basically fake a tragedy. Go to shrink and get a report, then go there editors would make it look like i was ill. What a d head, couldnt believe. I could tell he was on blow, with his twitching and mile a minute speak. His father is probably the better courseof action.

 

[peyton]

They can't go after your house unless the house is bought within your corporation. No personal assets can be touched. Being incorporated protects you from that

 

[patton]

never keep any money in your principal business then what you need for basic day to day operations.
lets say " x " amount. when you hit above " x " amount shift the money into another company.. call it " holdco", any leans lawsuits etc against principal company wont effect holdco.
hold co can be in your name or your wifes ( if you trust her)
is the principal company limited? not a corporation?
file articles of incorporation etc and make it limited etc...
opening other bank accounts wont work in the end... they are garnishing your company's earnings etc
cannot come after your house...
the CRA is only interested in collecting taxes owed. if you negotiate and work something out thats all they care about.
also look at purifying your assets so your can get your one time tax exemption..
get everything in writing from anybody you speak to at CRA

 

[Sieggo]

They can't go after your house unless the house is bought within your corporation. No personal assets can be touched. Being incorporated protects you from that

I may be wrong but I've heard of something called directors liability. I think they can come after personal assets if the debt involves trust funds (payroll deductions/GST/HST).

 

[danmand]

I may be wrong but I've heard of something called directors liability. I think they can come after personal assets if the debt involves trust funds (payroll deductions/GST/HST).

That is right. Directors and officers of the company are personally responsible for paying payroll deductions and HST to CRA. These amounts are CRA's monies that the company failed to forward, therefore the harsh rules.

Most larger company have directors and officers liability insurance for this and other reasons. A couple of small companies I am involved with have created an "advisory board" which avoids liabilities. It is near impossible to get people to sit on small companies' board of directors.

 

[T.O.tourist]

Did this happen with no notice to you or did you ignore multiple letters that were send your way?

 

[out4fun]

They can't go after your house unless the house is bought within your corporation. No personal assets can be touched. Being incorporated protects you from that

Being a corporation doesn't protect your personel assets from RC. Directors of a corporation can be held responsible for unpaid government remittances.

 

[Don Draper]

Where's your accountant? Though I've never used them, and I have heard mixed things, you may want to check-out DioGuardi and Associates. Good luck

NO NO NO NO!!!

Do not call the Dio Guradi crooks. They're even bigger criminals! If you want a good tax lawyer # just PM me.

I'd start with a dissolution of your existing Corp. and starting a new one.

 

[danmand]

Being a corporation doesn't protect your personel assets from RC. Directors of a corporation can be held responsible for unpaid government remittances.

Not can be -- will be. No ifs and buts there. And dissolving the corporation is not a solution, and neither is resigning as director from the corporation. Unpaid remittances are in effect unapproved loans, and CRA rightly so has no patience with that.

Payroll taxes is monies you have collected from your employees on behalf of CRA. To not remit them to CRA is akin to fraud.

 

[Mencken]

They can't go after your house unless the house is bought within your corporation. No personal assets can be touched. Being incorporated protects you from that

Hmmm....not so sure about that.

 

[pilen13]

Peyton, your statement is incorrect. RCanada can pursue the dirrectors of the corporation. Being a limited corp only protects you from your vendors.