If a taxpayer does not agree with an assessment from the Canada Revenue Agency (“CRA”), there are a number of avenues the taxpayer may explore to dispute the assessment. Once an assessment is in dispute, the taxpayer usually does not have to pay the amount in dispute until a conclusion has been reached and the taxpayer agrees to not appeal the decision any further.
What taxpayers do not realize is that if CRA feels that waiting will significantly hurt their ability to collect amounts owing, it can apply to the Federal Court of Canada, without any notice to the taxpayer, to approve the collection of debts prior to the conclusion of the issue.
CRA is attempting to obtain a Jeopardy Order allowing it to collect the outstanding debt not withstanding that the amount is in dispute.
A Jeopardy Order is issued if, “there are reasonable grounds to believe that the collection of all or any part of any amount assessed in respect of a taxpayer would be jeopardized by a delay in the collection of that amount…”
A Jeopardy Order allows CRA to actions to collect the debt.
A Jeopardy Order may be challenged before the Courts. If you have received a Jeopardy Order you must act fast. Give Barrett Tax Law a call today and know your rights.