Blog
Did the CRA assess the Director of a Bankrupt Company in Time?
Directors of corporations can be held personally liable for the unremitted HST and payroll deductions owing by those corporation to the Canada Revenue Agency (“CRA”). However, when a corporation files for bankruptcy, the CRA is required to undertake certain steps in...
Application for a Bankruptcy Order by a Creditor – Another Tool in the Litigators Toolbox
Your client calls you and indicates that they have tirelessly attempted to collect a substantial debt owing to them. Emails, phone calls and letters demanding payment have not resulted in any collection. In these situations where the debt is owing, but payment hasn’t...
Substituting a Bankruptcy Trustee – Creditors May Replace the Trustee of a Bankruptcy Estate
The Bankruptcy and Insolvency Act (Canada) (“Act”) at subsection 14 allows the creditor(s) of a bankrupt estate, whether it be in respect of a bankrupt individual or corporation, to substitute the Trustee chosen by the bankrupt for a Trustee of their choosing. This...
Protecting Corporate Directors from CRA Assessments
In Canada, the directors of a corporation may be the subject of significant personal liability in the event that the corporation becomes insolvent and cannot repay all of its creditors. One of the most common creditors to assess the corporation’s directors is the...
My Client’s Business Needs Protection from its Creditors … and it Needs it Now
Some businesses reach a point in their life cycle when they are saddled with debt and there simply is not enough cash to go around. Some of these businesses are able to generate enough cash to work with their creditors to get through the cash crunch. Unfortunately,...
My Business Needs Protection from its Creditors and it Needs it Now
Some businesses reach a point in their life cycle when they are saddled with debt and there simply isn’t enough cash to go around. Some of these businesses are able to generate enough cash to work with their creditors to get through the cash crunch. Unfortunately,...
Income Tax Act section 160 – Tax Liability Associated with Transfers to Related Parties
Generally speaking, individuals and corporations are able to sell or transfer their property to anyone without concern. However, there are times when a transferor cannot do whatever he or she would like to do with his or her property including, giving it away,...
Early Termination of Contracts / Agreements is a Tool Available to Companies in a Financial Restructuring
Often, when a business is facing financial difficulties it is hampered by unprofitable supply agreements or expensive service contracts. Any business that is using the Bankruptcy and Insolvency Act (the “BIA”) to make a proposal to its creditors may utilize certain...
Using A Bankruptcy To Unravel A Financial Fraud
Often times an investigation into the financial affairs of an individual or business that is suspected to have been involved in a financial fraud is impeded by the inability of the aggrieved party to obtain the necessary documents, records and other information needed...
Does a Proposal Filing Affect a Tax Debtor’s rights to object, appeal or request relief?
Tax lawyers and accountants know well that often times individuals and businesses are required to object, appeal or request relief in order to correct an error made by the Canada Revenue Agency (“CRA”) and/or to reduce interest and penalties which were assessed...
CRA Froze and/or Garnished Your Bank Account? Options?
It is no secret that the Canada Revenue Agency (“CRA”) has tremendous legislative power to pursue businesses and individuals who are in arrears of their tax obligations. These powers include, among other things, the ability to freeze and garnish funds in bank...
The Proliferation of the Consumer Proposal
A consumer proposal is a legislative tool that individuals can use to consolidate and reduce the amount of their debts without filing for bankruptcy. For individuals, debt consolidation legislation is governed by the Bankruptcy and Insolvency Act (the "BIA")....
Bankruptcy and Insolvency Act Section 38 – Creditors Taking Matters Into Their Own Hands
For lawyers who do not practice regularity in bankruptcy and insolvency matters, with the next few email updates we hope to shed light on a few of the interesting provisions in the Bankruptcy and Insolvency Act (“BIA”) that are used quite regularly by the Insolvency...
Key Areas of Action for Businesses to Remain Solvent through COVID-19
Licensed Insolvency Trustees have a wealth of experience and expertise in helping business owners get through turbulent times. As professional advisors, we must leverage that experience and expertise to assist businesses negatively affected by COVID-19. Our goals...
CRA Can Assess Your Family Members for Your Income Tax Debt!
The Canada Revenue Agency (CRA) has continued to make massive improvements in the area of income tax debt collection, and is showing no signs of slowing down. Methods traditionally reserved for extreme cases, such as wage garnishments, liens, and the invoking of other...
Advice for Accountants and Lawyers with Clients Facing Insolvency
Many accountants and lawyers encounter clients who, despite their best efforts to make a business thrive and be successful, take on too much debt and must consider insolvency proceedings. At times the biggest challenge when facing these scenarios is determining the...
CRA’s Collection Push is Here
The Canadian Revenue Agency (CRA) has made it clear that they plan to get much better at collecting outstanding tax debts over the next 5 years, which means Canadians who aren’t current or compliant with their tax payments need to be on notice. But with that said,...
CRA Assessments: A Tough Negotiation
A common feeling amongst many professionals, business owners, and self-employed individuals is the nervous sensation that accompanies any type of letter from the Canada Revenue Agency (CRA). Generally speaking, it doesn’t matter what the letter says, nervousness...
Managing your inheritance: Be careful and get the right tax advice
Over the course of the next decade one of the largest wealth transfers in Canadian history will take place as Baby Boomers pass down their wealth to their children and grandchildren. You will likely have some friends and family who will benefit from this wealth...
Tips to Avoid Bankruptcy
Nobody want to declare bankruptcy, aside from the toll it will take in an individual's credit score the mental impact can be staggering to anybody. That said, and given the impact that bankruptcy can have on people, this week's blog offers up some helpful tips that...
Tax Evasion: A CRA Focus
Over the course of several months I have taken the opportunity this blog provides to explain some of the Canadian Revenue Agency (CRA) activities being undertaken to reduce Canadian tax evasion and ensure that everybody is paying their fair share to the Government. ...
New “Self-Employed” Economy Leads to Greater CRA Debts
I recently took a ride in an Uber car and had a very interesting conversation with my driver that highlighted a precarious problem for Canadians: being self-employed and planning for end of year income taxes is not always easy for people to do. Within one month I...
Inactive Businesses Still Need To Be Compliant With CRA
An avoidable mistake Even when a business is completely inactive, and not generating any income, the owners should still file the required returns with the Canada Revenue Agency (CRA) to avoid issues, including potential penalties that can arrive years down the road....
Are you a self-employed lawyer, doctor or dentist? Are you behind on paying your income taxes or HST?
Self-employed lawyers, doctors, dentists and other professionals can benefit from consulting a Restructuring Professional such as a Trustee in Bankruptcy! Self-employed individuals find themselves in financial trouble for many different reasons. Slopes in the economy,...
Should I file a Consumer Proposal in Toronto or the GTA?
If you’re struggling with your finances, you are not alone. Many people have an ongoing problem with debt, especially since it can sneak up on you when you least expect it. One day you’re behind on one bill and the next day you’re months behind on several bills and...
Resolving Corporate Canada Revenue Agency Debts in the Era of COVID-19
Corporate insolvencies involving Canada Revenue Agency (“CRA”) debts have been increasing for several years. Up until the outbreak of COVID-19, CRA utilized their extraordinary investigation and collection powers with ever increasing vigour. Will the era of COVID-19...
5 Facts about Ontario Consumer Proposals
Choosing to file an Ontario Consumer Proposal is a big decision, and understandably you’ll have questions regarding what steps you need to take, how the process works and what will happen after it’s all said and done. Here are a few facts to consider about Ontario...
The Do’s and Don’ts of Lending Money to Family | Albert Gelman Inc. | 416.504.1650
Many of us have been in a tough financial situation ourselves, so seeing someone you love—like a family member—go through this type of struggle can be difficult. Wanting to help someone you love that’s in need is only natural, and sometimes lending to a family member...
The Consumer Proposal Process | Albert Gelman Inc. | offices in the GTA
Albert Gelman Inc. offers free, no-obligation financial consultations. Our licensed Trustees can help you get back on track! Call us today at 416-504-1650 or visit our locations page to find a location that works for you! A consumer proposal allows you to pay back...
Do You Owe CRA? | CRA Income Tax Debt | Find A Solution With Albert Gelman Inc.
If you’re finding yourself in debt with the CRA, you’re not alone. This type of debt is often unforeseen and can be a heavy burden. The following are some of the things that may result in CRA income tax debt: A re-assessment of a prior year tax return A self-employed...
When is Declaring Bankruptcy Necessary? | Trustee in Bankruptcy | Albert Gelman Inc.
Bankruptcy can be a good option when you have a serious amount of debt. If you have a limited income, have little to no equity in your assets and are struggling to pay your bills and pay down the debt, bankruptcy may be the best option for you. What are the Benefits...
Bad Debt vs. Better Debt | Trustee in Bankruptcy | Albert Gelman Inc. – Offices in Toronto, Scarborough, North York, Mississauga, Richmond Hill
Bad Debt vs Better Debt You may have heard that there is such a thing as “good debt,” and wonder how it is possible to owe a creditor money in a good way. Although it’s true that there is debt that can be considered “good” in a sense, however, “good” is not...
Federal Income tax debt relief solutions | Albert Gelman Inc.
Income Tax Debt Solutions: What You Need to Know Do you find that every time you file your income taxes you seem to owe the government money? Are you struggling to repay these debts and spiraling further and further into debt? You are not alone. Many people find...
Why a Consumer Proposal Makes Good Sense
When debt accumulates to a point where it is difficult to manage even your minimum monthly payments, something has to give. Most people that find themselves in a situation where they are drowning in debt and want to pay their creditors. Sometimes creditors will demand...