Debt collection at the CRA

Garnishing your income and accounts – Debt collection at the CRA

In some cases when you have an unpaid debt, we can ask someone who owes you money or holds money for you to send it to us. This can be, but is not limited to:

• your employer
• a financial institution
• a spouse
• a business partner
• a director
• an individual
• a corporation
• another government department

We send these requests (called garnishments) as one of the following legal documents:

• Requirement to pay (RTP)
• Enhanced requirement to pay (ERTP)
• Demand on a third party (DTP)

The CRA will apply the garnished amount toward your debt. We will send you a copy of any garnishment request made related to a debt you owe.

If you receive an RTP, ERTP, or DTP to garnish someone's income or accounts, refer to: How to process a garnishment from the CRA

Redirecting money owed to you by the federal government (set-offs)

If you receive or are owed money by any federal government department or agency (i.e. Service Canada), we can ask them to redirect the funds to pay your debt.

This includes, but is not limited to:

• Your Canada Pension Plan (CPP) or Old Age Security (OAS)
• Your business contract with the federal government
• Your pay, if you are a federal employee

Even if you have a payment arrangement and are making regular payments, we can also use federal or provincial credits or benefits to reduce your debt, including:

• Goods and services tax/harmonized sales tax (GST/HST) credits
• Future income tax refunds

Refer to: How payments are applied to offset debt

Other legal collection actions we may take

Depending on your situation, there are different legal actions we might take.

• How we may make another person or entity also responsible for your debt
• Putting a lien on or seizing your assets

For more about how much time the CRA has to collect debts, refer to: How long a debt can be collected by the CRA