Canadians living at the financial edge may be pushed to the brink when the taxman comes calling, according to a new study from licensed insolvency trustee Hoyes, Michalos & Associates Inc (report available here).
According to the firm’s annual Joe Debtor study, tax obligations returned as the primary driver of consumer insolvencies in 2021 as the pandemic strained household balance sheets, and the insolvency experts believe there’s more pain ahead as the world returns to a more normal state.
“We believe that this increase in tax insolvencies is the tip of the iceberg,” the firm said in a release, forecasting that stronger action from the Canada Revenue Agency (CRA), an end to interest relief on COVID tax obligations, and the upcoming tax filing deadline will lead to an increase in insolvencies. Here is a direct video link.
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