CRA says it won’t force households into bankruptcy

The Canada Revenue Agency (CRA) says that it won’t push households that are already financially troubled into bankruptcy due to the economic effects of the Covid-19 outbreak.

According to a notice from the Office of the Superintendent of Bankruptcy (OSB), the CRA has heard concerns from insolvency trustees and the OSB about debtors who are worried about defaulting on their debt proposals as a result of losing their jobs or suffering a decline in income during the pandemic.

The OSB said in cases where the CRA is the majority creditor, the CRA has proposed deferring payment requirements until Sept. 1 and granting a waiver of the defaults that would otherwise occur for missed payments.

“Hopefully, this will offer taxpayers the time to focus on other aspects of their financial wellbeing without having to file for bankruptcy,” the OSB notice said.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.