Tax debt is dischargeable (it will go away) in bankruptcies and proposals. Canada Revenue Agency will settle on tax debt that is owing!
If you owe HST as a self-employed person, this debt will also ‘go away’.
It is important that you make sure you file your returns –even if you cannot make payment–because failing to file when taxes are owing is tax evasion (which is a criminal offense), and once criminal proceedings start, we are no longer in a position to help!
Bottom-line: File your returns, and don’t wait too long before contacting us. We can handle the CRA.
There are special rules regarding employers and directors of companies which we would be happy to discuss with you if you fall into this category.