The Canadian Trucking Alliance (CTA) is advising its members that it has recently been made aware of a series of notices being issued by the Canada Revenue Agency (CRA) to carriers.
Over the past several weeks, carriers have reported receiving correspondence indicating that another business – often another carrier they have previously dealt with – has an outstanding tax debt owed to the CRA. In some cases, the amounts identified in these notices are substantial, reaching into the multi-million-dollar range.
The notices, known as “Requirement to Pay” orders, instruct recipients that any funds currently owed, or that may become owed in the future, to the identified company must instead be remitted directly to the CRA. The correspondence typically includes instructions for payment, as well as CRA contact details and reference information.
According to the Agency, these requirements are issued in situations where the CRA has been unable to reach a satisfactory payment arrangement with a taxpayer who has an outstanding debt. The notices function as a form of garnishment, redirecting payments owed to the debtor directly to the CRA.
CTA has so far become aware of several such cases and expects that members may encounter more of these notices going forward as CRA enforcement actions continue.
As with all financial and legal communications, members are reminded to remain vigilant and cautious of potential scams. If there is ever any uncertainty, members who receive a “Requirement to Pay” notice involving another business they have dealt with and have questions about its authenticity and their responsibilities are encouraged to contact the CRA directly for confirmation and instructions.