Ignoring the fact that your business is in arrears with the CRA won’t make the fact go away. Instead, it’s a risky gamble. If you’ve fallen behind on filing or paying your source deductions or income taxes, it’s tempting to assume it’s no big deal. After all, you haven’t been audited, and no one you know has either. Maybe the CRA will forget about it, right?
Wrong.
The Canada Revenue Agency (CRA) doesn’t forget—and it doesn’t go away. Here’s what you’re really risking by not keeping up with your tax and filing obligations:
Mounting Penalties and Daily Interest
Interest starts the day after your payment is due, and penalties can climb quickly—especially for repeated failures to file or remit. What might have been a manageable balance can snowball into something far more serious.
Personal Liability
If your business is incorporated and you haven’t remitted source deductions (like CPP, EI, or income tax from employees’ pay), the CRA can pierce the corporate veil. That means they can hold you personally liable—putting your personal savings, home, and other assets at risk.
Wage Garnishments and Bank Freezes
CRA has the power to garnish your wages or freeze your business (and personal) bank accounts without going to court. That means overnight, you could lose access to the cash flow you rely on to operate your business.
Asset Seizure
In severe cases, the CRA can seize and sell business assets—including vehicles, equipment, and inventory. It doesn’t happen every day, but it does happen. And it’s devastating when it does.
Not Just an Empty Threat
While audits may seem rare in your circle, CRA audits and enforcements happen every day across Canada. And they’re not just focused on big corporations—small businesses are often easier targets.
Don’t Bet the Business by Ignoring the CRA
Assuming you’ll never get caught is a dangerous game. The risk isn’t just penalties—it’s the future of your business, your reputation, and your financial well-being.
If you’re behind, get ahead now. Talk to a tax professional (like Compass CPA). We’ve helped many small business owners clean up and move forward—before things got ugly.
