Independent · Canadian rules and data only · Reviewed November 3, 2026

    4 min
    Taxes

    CRA collections: what the CRA can do if a tax debt is unpaid

    Quick summary

    If a personal tax debt stays unpaid, the CRA can garnish income and accounts, keep refunds and benefits, place a lien, or seize assets. It generally warns you first. The time to act is before that, so read about apayment arrangement.

    Checked November 3, 2026. Main source: CRA: If you don't pay your debt, legal warnings (modified Sept. 18, 2026). See all 2 sources.

    Legal actions the CRA lists

    • Garnishment of your income and accounts.
    • Set-off: refunds and government credits or benefits, such as the Canada Groceries and Essentials Benefit, are applied to your balance.
    • Making another person or entity responsible for your debt.
    • A lien on your assets, or seizure of them.

    The warning you get first

    • Generally the CRA tries at least once to give a verbal legal warning by phone and sends one written legal warning letter.
    • A legal warning is valid for 180 days. The CRA can act in that time, even if your balance changes.
    • Business payroll and GST/HST remittance debts can lead to legal action right after you are notified.

    What to do

    • Call the CRA before action starts and ask about a payment arrangement.
    • If action has started, call the number on the letter.
    • Ask a Licensed Insolvency Trustee about options if the total is too large.

    Free help

    • CRA Non-Filer helpline: 1-800-448-0444, Monday to Friday, 6:45 am to 7:30 pm Eastern.
    • CRA TeleArrangement for personal income tax debt: 1-866-256-1147, Monday to Friday, 7 am to 10 pm Eastern.
    • Free tax clinics for simple returns if your income is modest.
    • A Licensed Insolvency Trustee, who may offer a free first meeting.

    Questions people ask

    Can the CRA take money from my bank account?

    Yes. Garnishment of income and accounts is one of its legal collection actions.

    Does the CRA warn me before legal action?

    Generally yes. It tries at least once to give a verbal warning and sends one written warning letter. The warning is valid for 180 days.

    Can the CRA keep my tax refund?

    Yes. Refunds and some government credits and benefits are applied to your balance owing.