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.
February 15, 2022 | Tax Insolvencies Tip of Iceberg in Canada
Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com
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Danielle Park February 15th, 2022
Posted In: Juggling Dynamite