Home -> Filing Your Return -> GST/HST -> Can CRA Withhold My Tax Refund or Benefits or Garnish My Wages?
Can CRA Withhold My Tax Refund or Benefits or Garnish My Wages?
Income Tax Act s. 164(2), 222
Tax Refunds and/or GST/HST Credit
The answer to this is yes, Canada Revenue Agency (CRA) can withhold a refund and/or GST/HST credit, if:
 | the taxpayer has an income tax liability outstanding for another taxation year |
| the taxpayer is in debt to a federal, provincial or territorial government |
| CRA is ordered to do so under a garnishment order under the Family Orders and Agreements Enforcement Assistance Act |
| the taxpayer has any outstanding GST/HST returns from a sole proprietorship or partnership |
For more detail see the CRA web page on Refunds.
What Other Collection Actions Can CRA Use?
Besides withholding your income tax refund or your GST/HST credit, CRA can:
| garnish wages or other income |
| seize and sell your assets |
| withhold your Canada Pension Plan payments |
| withhold your Old Age Security payments |
It's possible CRA will not take any collection actions if they can see that you're making payments on your debt to them on a regular basis. However, you will continue to be charged interest.
TaxTips.ca Resources
Personal Income Tax Return Due Date
Late Filing Penalties and Interest
Canada Revenue Agency (CRA) Resources
Payment Arrangements, which talks about what you can do if you cannot pay the balance owing
IC98-1R8 Tax Collections Policies
IC13-2R1 Government Programs Collection Policies
Tax Tips:
Always file your tax return on time, even if you can't afford to pay the tax!
Then, pay what you can, and keep paying till it's paid off!
Revised: September 20, 2024