How to Make My CRA Owing Go Away- there’s no statute of limitations

If you owe money to the government, there’s no statute of limitations. You can’t wait out this type of debt.

This statement is largely true in practice, and misunderstanding it has cost thousands of Canadians significantly more in interest, penalties, and stress.

If you’re asking “How do I make my CRA owing go away?”, this article explains:

• What CRA tax owing really means

• The truth about the statute of limitations in Canada

• Why waiting does not work

• Real examples

• The absolute circumstances where CRA debt is written off

• How Tax4Less.ca helps clients legally reduce and resolve CRA debt

If you owe taxes and don’t pay them, years later the government can still:

• Send collection notices

• Garnish wages

• Freeze bank accounts

• Apply interest and penalties

So when people say CRA debt will disappear in 10 years.. Think Again dont take that on face value!!!

“Government debt has no statute of limitations,” they mean:

What Does “There’s No Statute of Limitations” Really Mean?

In Canada, CRA technically has a 10-year limitation period to actively collect tax debt.
However, this does NOT mean your tax debt expires or disappears.

In practical terms:

• CRA debt does not go away with time

• The 10-year clock can be reset very easily

• Interest continues to grow

• CRA can still recover the debt indirectly

That’s why professionals often say:

“You can’t wait out government debt.”

What Is CRA Tax Owing?

CRA owing means you have an outstanding balance with the Canada Revenue Agency, which may include:

• Personal income tax

• HST/GST

• Payroll deductions

• Penalties and interest

Once assessed, CRA has powerful collection tools, including wage garnishment and bank account freezes.

The CRA 10-Year Statute of Limitations (Explained Clearly)

CRA generally has 10 years from the date of assessment to take active collection actions.

⚠️ This is NOT a forgiveness rule.

The debt still exists after 10 years, and CRA can:

• Keep charging interest

• Apply tax refunds or credits

• Offset benefits

• Restart collections if the clock resets

What Resets the CRA 10-Year Clock?

The limitation period resets if any of the following happen:

• You make a payment (even $1)

• You file a tax return

• You acknowledge the debt in writing

• You enter into a payment plan

• CRA takes legal collection action

Example:

You owe CRA $40,000 from 2014.
In 2023, you file a return or make a small payment.

➡️ The 10-year clock resets to 2023

This is why waiting almost never works.

Real CRA Debt Examples

Example 1: Waiting It Out

A taxpayer believed CRA debt expires after 10 years.
They filed a return in year 9.

➡️ CRA restarted collections and added interest and penalties.

Example 2: Ignoring CRA Letters

CRA garnished wages and froze a bank account, increasing the total owing by thousands.

Example 3: Death of the Taxpayer

CRA collected the balance from the estate before heirs received anything.

➡️ Family members were not personally liable, but inheritance was reduced.

When Does CRA Tax Owing Actually Go Away?

CRA debt is only written off under specific legal circumstances.

1. Death With No Estate Assets

If the taxpayer:

• Passes away

• Has no assets in the estate

➡️ CRA may write off the remaining debt
➡️ Family is not personally responsible

2. Bankruptcy or Consumer Proposal

Most CRA tax debts can be:

• Discharged in bankruptcy, or

• Reduced through a consumer proposal

➡️ One of the most effective and legal solutions

3. CRA Taxpayer Relief (Fairness Provisions)

CRA may cancel:

• Penalties

• Interest (rarely principal)

Only in cases of:

• Severe financial hardship

• Serious illness

• Natural disasters

• CRA error or delay

4. Debt Deemed Uncollectible

If CRA determines:

• No assets

• No income

• No ability to pay

➡️ Account may be marked uncollectible
➡️ Not permanent — can be reopened later

What Will NOT Make CRA Owing Go Away

❌ Ignoring CRA
❌ Waiting for time to pass
❌ Moving money to family
❌ Closing bank accounts
❌ Cash-only income

These actions usually make the situation worse.

How Tax4Less.ca Helps You Resolve CRA Owing

At Tax4Less.ca, we specialize in CRA representation and tax debt resolution.

Why clients trust us:

• ✅ 15+ years of experience

• ✅ Direct representation of clients with CRA

• ✅ Proven success in reducing CRA owing for eligible clients

• ✅ Strategic handling of audits, collections, and negotiations

• ✅ Personalized, compliant, and legal solutions

We don’t promise shortcuts — we deliver real results using CRA-approved processes.

📍 Serving clients across Toronto, GTA, Ontario, and all of Canada.

Final Takeaway

CRA tax debt does not disappear with time.
There is no safe way to “wait it out.”

But with the right strategy and professional representation, it can be:

• Reduced

• Managed

• Settled

• Or legally eliminated in specific situations

Early action saves money, stress, and long-term consequences.

Frequently Asked Questions (FAQ)

Does CRA tax debt expire after 10 years?

No. CRA debt does not disappear. The collection period can reset easily, and interest continues.

Can CRA forgive tax debt?

Only in limited circumstances such as bankruptcy, death with no estate, or severe hardship relief.

Can CRA collect from my family?

No, unless assets were improperly transferred. CRA collects from the estate, not family members personally.

Can Tax4Less represent me to CRA?

Yes. Tax4Less.ca has over 15 years of experience representing clients directly with CRA.

Call to Action Today

Owing CRA? Don’t wait it out.
Let Tax4Less.ca review your situation and help you take control — legally and strategically.

📞 Call today or visit www.tax4less.ca