Does the CRA use collection agencies?
Not for tax debt. The CRA collects that in-house through its own collections officers. You deal with the CRA directly.
Scam calls impersonating the CRA are common. If a caller pressures you to pay immediately by gift card, e-transfer, or cryptocurrency, hang up. You can confirm any real balance in CRA My Account or by calling the CRA at 1-800-959-8281.
Reported collection agencies that Canada Revenue Agency uses
These are the collection agencies consumers have reported hearing from about Canada Revenue Agency debts. If one of them is calling you, their number is below.
| Agency | Phone |
|---|---|
| ARO Inc | 1-877-322-1414 |
| Debt Control Agency (DCA) | 1-866-307-5322 |
Based on consumer reports and public records. Always verify the agency's identity before making any payment.
Can the CRA garnish wages or freeze your bank account?
Yes. A Requirement to Pay sent to your employer or bank obligates them to redirect your wages or account balance directly to the CRA, and no court order is required. A private creditor would have to sue you first.
Liens and seizures work differently. Before registering a lien on your home or seizing assets, the CRA must certify the amount you owe in Federal Court or obtain a provincial judgment. It also keeps your tax refunds and GST/HST credits, and on most newly assessed tax debt, it can't start legal action until 90 days after the notice of assessment.
Source: Canada Revenue Agency – Tax collections policies IC98-1
Once a consumer proposal or bankruptcy is filed, the Bankruptcy and Insolvency Act imposes an automatic stay of proceedings. At that point, CRA garnishments and most other collection measures stop.
Source: Bankruptcy and Insolvency Act – sections 69.2 and 69.3
Can the CRA forgive your tax debt?
No CRA program writes off the tax you owe. CRA taxpayer relief provisions allow you to request cancellation of penalties and interest when hardship or events outside your control caused them. The tax remains payable in full.
Outside of a consumer proposal or bankruptcy, the CRA has no authority to accept less than the full balance.
Source: Canada Revenue Agency – Cancel or waive penalties and interest
CRA tax debt relief options
A payment arrangement spreads the balance over monthly instalments. Interest continues to accrue while it runs, and you must stay current on new filings and payments. Taxpayer relief removes penalties and interest but leaves the tax untouched.
Only a Licensed Insolvency Trustee can administer a consumer proposal or a bankruptcy. A consumer proposal settles unsecured debts for less than the full amount, and CRA income tax and GST/HST arrears are treated as unsecured debt.
Bankruptcy discharges most unsecured debts, including CRA debt. However, if personal income tax debt is $200,000 or more and accounts for at least 75% of your total unsecured proven claims, your discharge is subject to a court hearing.
What if you haven't filed your returns?
The Voluntary Disclosures Program (VDP) lets you come forward to correct returns you never filed, income you didn't report, or expenses you shouldn't have claimed. The rules changed on 1 October 2025. An unprompted application, made before the CRA contacts you about the issue, now cancels 100% of penalties and 75% of interest.
Once the CRA has reached out, interest relief drops to 25%. You still have to pay the tax and the remaining interest, but an accepted application also protects you from criminal prosecution.
Use taxpayer relief when your filings were accurate. Use the VDP when your filings were missing or incorrect. Either way, the CRA won't agree to a payment arrangement until you file your outstanding returns.
Source: Canada Revenue Agency – Changes to the Voluntary Disclosures Program
Will CRA tax debt affect your credit score?
Usually not directly. The CRA does not report tax debt to Equifax or TransUnion, so an unpaid balance won't appear on your credit report as a collection account from a private creditor would.
The exception is when the CRA certifies the debt in Federal Court and registers a lien against your property. Court registrations and liens are public records and appear in property searches and on your credit report. A consumer proposal or bankruptcy appears there as well for years after you finish it.
What to do if the CRA contacts you about a tax debt
First, confirm the debt is real. Check your balance in CRA My Account before paying anything, especially if the first contact came by phone.
Then file any outstanding returns. If you can pay in full over time, call the CRA's personal income tax debt line at 1-888-863-8657 to set up a payment arrangement. (Weekdays only, 8 to 8 Eastern, which is no help if those are your working hours.)
If you can't realistically repay what you owe, get advice from a Licensed Insolvency Trustee. Be wary of debt-relief companies that charge a fee just to refer you to one.
Find a trustee through the Office of the Superintendent of Bankruptcy's directory.
Source: Canada Revenue Agency – Contact the CRA about your debt
Other government creditors
Other companies in the same industry that send accounts to collections.