When money disappears from a bank account or paycheque because of a CRA debt, it is almost always one of two things: a Requirement to Pay (RTP) sent to your bank, employer or client, or a set-off of a refund or benefit the CRA owed you. This page is for the reader who has already lost the money: identifying which action it was, and how to get it stopped. It is part of the Dealing with the CRA directory.
How it got to this point
The CRA does not take money from accounts without prior steps: a balance is assessed, reminder letters and calls follow, and an RTP comes only when there is no response or arrangement. The full sequence, and the interest that runs throughout, is covered in what happens if you don’t pay the CRA.
If you received no letters or calls before money was taken, the address the CRA has on file may be out of date, since physical notices go to your last known address; updating it is covered in how to change your address with the CRA.
Which action took the money
| Asset type | CRA authority | Notes |
|---|---|---|
| Bank account balance | Yes, Requirement to Pay | Bank must comply; no court order needed |
| Wages | Yes, employer Requirement to Pay | Portion of each paycheque redirected |
| Tax refunds | Yes, automatic offset | Applied before refund issued |
| Accounts receivable from clients | Yes, client Requirement to Pay | Client pays CRA instead of you |
| TFSA balance | Yes (via RTP to institution) | Bank must comply with RTP |
| RRSP/RRIF balance | Limited, generally protected inside | RTP can capture on withdrawal |
| Principal residence | Requires court judgment | CRA can register a lien; forced sale is rare |
A Requirement to Pay. The CRA sends the RTP directly to your employer or bank, and they are legally required to comply, even if they would like to help you. You typically receive a copy by mail, but the garnishment may already be in effect before your copy arrives.
A set-off of a government payment. The CRA automatically applies payments you are entitled to against your tax debt:
| Payment type | Can CRA intercept? |
|---|---|
| Income tax refund | Yes, automatically applied to balance |
| GST/HST credit | Yes, if you owe CRA |
| Canada Child Benefit | Yes, though CRA has some discretion for financial hardship |
| CPP/OAS | Requires a separate process via Service Canada |
| EI payments | CRA can issue an RTP to Service Canada |
A deposit that arrived smaller than expected is often a set-off; working out which payment a CRA deposit was is covered in why the CRA deposited money in your account.
What to do in the first 24 to 72 hours
- Log into CRA My Account at canada.ca/my-cra-account and check your balance owing, any correspondence, and the specific debt referenced; the My Account guide shows where each item sits
- Check your physical mail: the CRA sends formal notices to your last known address, so a move you did not report can mean several missed notices
- Call CRA Collections: ask what debt triggered the action and whether a payment arrangement is available
- Document the seized amount and date: you will need this for your records and for any objection
- Look at where your income lands: if a bank account is partially seized but your regular income still deposits there, your bank can explain the options
Most first-time collection actions end in an arrangement when the taxpayer calls first. The CRA’s goal is recovery, not punishment, and a structured payment plan is its preferred outcome.
Getting it stopped
A payment arrangement
Agreeing to regular payments with CRA Collections pauses further collection, and the CRA typically withdraws an employer RTP once a compliant arrangement is in place. Interest continues. How to set one up, and the terms the CRA usually accepts, are covered in CRA payment arrangements when you can’t pay.
An objection, if you dispute the debt
When the debt itself is wrong, objecting to the assessment puts collection of the amount in dispute on hold until Appeals decides, provided the objection is in on time. How to object, and by when, is on the guide to disputing a CRA assessment.
Taxpayer relief, for hardship or CRA error
Form RC4288 asks the CRA to cancel penalties and interest. It does not pause collections but can reduce the total owing; the same payment arrangement and taxpayer relief guide covers when it applies.
A consumer proposal or bankruptcy
A Licensed Insolvency Trustee files on your behalf, and all CRA collection action stops legally: your employer receives a stay of proceedings, and the CRA becomes a creditor in the proposal. How the two routes differ is covered in bankruptcy vs a consumer proposal.
Getting help
| Resource | Contact | Best for |
|---|---|---|
| CRA Collections | 1-888-863-8657 | Payment arrangements, RTP inquiries |
| CRA Individual Tax | 1-800-959-8281 | Understanding balance details |
| Licensed Insolvency Trustee | Find at: ic.gc.ca/trustee | Consumer Proposals, bankruptcy |
| Tax lawyer/CPA | Local practitioners | Dispute, Tax Court, complex situations |
Hours for both CRA lines are on the CRA contact information page. If a bank froze the account, the bank’s side of a freeze is explained in why a bank freezes an account.
Related CRA guides
- Checking whether you owe the CRA: where the balance behind the action shows up
- Why the CRA reassessed your taxes: when the debt came from a reassessment