What can happen when you owe Canada Revenue Agency for unpaid taxes
WHAT CAN HAPPEN WHEN YOU OWE CANADA REVENUE AGENCY FOR UNPAID TAXES?
Set off: The government can re-allocate any payment of benefits to you and apply them towards your outstanding tax debt. So payments from GST Tax Credit, Trillium and other benefits can be used to reduce or pay your tax debts.
Garnishment: Canada Revenue Agency can seize funds from banks, other third parties and your wages to satisfy tax debts.
Seizure and sale of your property: Canada Revenue Agency can put a lien upon your home (or other large assets), and if debt is not satisfied seize the property and sell it (it is also important to understand that a bankruptcy will not discharge a lien against property)
Holding a third party jointly responsible: Canada Revenue Agency has the ability to hold third parties such as related corporations, spouses and other partners liable for your unpaid debts.