If you do not pay CRA, interest continues to accrue and collections can escalate from reminders to legal enforcement.
What CRA may do
- Add arrears interest to unpaid balance.
- Send collection notices and call for payment.
- Set off refunds or benefits against debt.
- Issue legal requirements to pay to employers or banks.
- Register liens in serious cases.
Best first step
Call CRA collections early and request a payment arrangement. Demonstrating cooperation can reduce enforcement risk.
If you truly cannot pay
- File all returns on time.
- Provide realistic cash-flow details.
- Consider professional tax debt advice for large balances.