Tax debt or Installments must be remitted before the due date. Failure to remit tax debt will result in penalties and interest.
Penalties and interest can be substantial depending on the amount owing and how long you’ve been owing.
Not responding the tax owing, the Income Tax Act allows the CRA starts cumulate penalty and interest which will increasing your tax liabilities significantly. Moreover, the Act allows the CRA to contact your employers or supplies for wages garnishment. The Act also allows the CRA to put liens on your assets, such as bank accounts, principal home and other investments.
When taxpayers encountered this situation, not only found themselves embarrassed in the work place but also inconvenience on their cash flow and financial planning. Most importantly increase their anxiety level which is harmful to their health.