CRA Tax Enforcement and Payment Recovery Process

The CRA has several enforcement and recovery steps after initiating collection.
Stages of Tax Enforcement:

• Legal Warning or Notice — CRA must notify you before legal actions begin.
• Demand for Payment — A formal legal document indicating intent to enforce.
• Requirement to Pay or Enhanced Requirement to Pay — allows CRA to collect from your
  bank or employer.
• Garnishment or seizure of assets — CRA takes direct action to recover money owed.
• Court Orders or Jeopardy Orders — in urgent cases, CRA may seek court enforcement.

Payment Recovery Tools & Strategies:

• Installment agreements or payment arrangements.
• Offset of refunds and credits.
• Use of liens or security.
• Legal enforcement or court action.
  

How eFile CRA Tax can help:
eFile CRA Tax can help respond to legal notices, negotiate installment plans, prepare
objections or appeals, and guide steps to avoid escalation.