Living in US - unpaid corporate taxes to Rev Canada

lucidreamer · Post by **lucidreamer** » Fri Sep 11, 2009 1:14 pm

Hello,

My ex-wife in Canada received a collection letter from Revenue Canada asking to pay $15,000 in corporate taxes for the company that we owed back in 2006.

I live and work in the US since 2006 and have no Canadian income from our company since spring 2006.

I plan to contact the Rev Canada and make arrangements regarding the tax due.

However, my main concerns are the consequences to my work visa and status in the US because I do not have my permanent residence in the US yet.

For instance, can the Rev Canada revoke my work status in the US or otherwise affect my stay here in a case I do not do anything? Or can they garnish my wages from the US employer.

Thank you.

nelsona · Post by **nelsona** » Sat Sep 12, 2009 6:24 am

Debt, regardless of to whom it is owed is NOT a grounds for revoking any immigrant or non-immigrant status in US.

lucidreamer · Post by **lucidreamer** » Sun Sep 13, 2009 7:37 pm

Thanks, Nelsona. Just curious... not that I am anxious to find out myself, but what can CRA potentially do to a person in my situation that does not reside in Canada anymore and provided he/she has no ability to pay back the taxes? I know that the CRA have a long arm and a long memory. But can they really garnish my wages or seize my car here in the US? Or when the Cnd passport is due for renewal, can they refuse to renew it or something, stop me from boarding the plane, etc.? Thanks.

Greg · Post by **Greg** » Tue Sep 15, 2009 6:46 am

I believe that the IRS will assist CRA in collecting the tax debt that you owe Canada. the IRS WILL COLLECT for Revenue CANADA under Article XXVIA of the US / Canada Income Tax Convention (Treaty). The IRS and CRA also have very efficient "Exchange of Information" rules under Article XXVII of the convention.