Dan’s Rant on people who don’t listen to free advice, don’t take action and then will squeal like a stuck pig when CRA comes to slaughter them.
Now here is a situation that could be really annoying if you let it. Sometimes people really need the straight goods and this Rant is in the form of what I had to write, in the hopes of awakening a fire under the derriere.
He actually sound like a nice gentle soul… but does he ever need a wake up call.
Sam writes to me… after I have him a lengthy free answer… the following email:
If you like… you can just scroll down to my rantish behavior below Sam’s letter to me. His letter is lenghty… maybe read it after my response.
Hello Mr. White,
Thank you so much for your e-mail and the information you kindly provided and as well for being so upfront and candid. Please know I really appreciate it very much and any help or suggestions you can offer. Of course, the only other information I was able to come up with my desperate ‘google’ internet information search last night was what appeared to be every other bankruptcy trustee in the City of Toronto. Perhaps, I am not looking in the right places or looking hard enough but as I am sure you are more than familiar with there does not appear to be much of any constructive advice or information on the internet available other then bankruptcy trustees saying to declare bankruptcy and/or a consumer proposal – neither of which I have ever done.
Ironically enough even the ‘friendly’ CRA collection agent that called me seemed to say several times that the amount of money I owed was small -
$3,285.14 and should be easy to pay off. He said that he would be kind to me and give me till Wednesday, January 18 but after that the automated process that you mentioned in your e-mail will start to happen and that it will be the point of no return. He even laughed somewhat sarcastically when I told him I was employed and said well that’s good – should be even easier then at that point in time I knew I should say very little as he was looking for lot’s of information.
I apologize in advance if I have become off topic as I know you are being very kind in any advice or suggestions you can offer me and are not currently on the ‘clock’ being paid. There is a very slight possibility that I may be able to borrow the money or part of it from a high interest/risk ‘facility’ lender like HSBC or Citi with Loan Shark rates like 29% but I may not have much of a choice as it will be that to get the CRA paid up and happy or face the consequences of the series of events that you mentioned. Fortunately (right now) my credit bureau is ok but not Triple A that a major chartered bank will say – no problem here’s 3 or 4 grand to pay the CRA – I think they will sort of laugh at me and then ask me to quietly leave. This is what I tried to politely explain to the CRA agent but he was not interested in listening or compromising at all. The CRA agent won’t even talk to me any further unless I have some type of piece of paper from the bank refusing to lend me money. Even then, assuming I did what they say, my ‘gut’ feeling is telling me they still won’t say no problem give us $100.00 or ? a month till it’s paid off, even though they are applying interest every day.
Unfortunately, there is no one I can borrow the money from, ie: parents or sister. I am thankfully employed and feel fortunate to make what I feel to be a decent salary. I don’t own a home I can borrow against and my car is old a 2001 VW Jetta with 375,000KMS on it but it runs so I don’t complain.
Sorry and not to get the violins out or take up your valuable time with my ‘life story’ this all started about 2004/05 when I was laid off for the first time in my life and I am paying back at $50.00 a month (barely covers the interest) a debt of $4500 to the CRA’s sister – Human Resources and Development for overpayment on Unemployment Insurance which they demanded that I pay back which I have been doing every month since 2005. I did try to explain this to the CRA agent as well. He pretty much said not my problem – deal with it (even though it’s the government as well). This CRA tax debt stems from a part time job I had working at Durham BMW in the parts department for several years where I worked every Saturday trying to make some extra money. Well, I guess I was very naive and didn’t realize till it was to late the employer was not taking enough tax off and that is what this debt is mostly from.
Sorry for the long winded e-mail Mr. White, depending on you hourly/retainer rate is there perhaps any way I could ‘hire’ or speak to one of your colleagues to suggest a plan that might work to deal with the CRA agent in the next week or so that might make them accept a payment plan or am I simply trying to do something that will never happen with the CRA? Any advice, suggestions or ideas you can suggest would be very greatly appreciated. Thank you again in advance for your valuable time and any advice you can offer.
_____ Here is my response… I don’t mean to be on kind, because Sam sounds like a nice guy.. but he really needs a kick in the butt! _________
Again I am going to be straight forward and honest. You may not like what I have to say, but it comes from a place of kindness….. Remember this… When someone gives you shit, listen to it, because it is free advice. I am going to give you shit now.
First, I am going to write what I think the CRA collections officer is thinking….
Sam is a little shithead. I gave him a bone and he threw it away…. I know freaking well he could get that loan… but he has his head stuck up his derriere, and would rather fail by not trying to succeed, then to fail by trying. If he can’t get off his behind and go onto a bank and apply for a loan, then I am going to fubar him over… Do I feel sorry for him? Hell no! He won’t even go ask for a loan because he thinks he may fail. Well … I figure on January 18 I am going to do a computer search and get his bank and his employer, and I will take 100% of his income… it will be paid off in a couple of months. And I don’t give a Rat’s ass is he starves.
Secondly, The following; is what I am thinking.
Sam either has a mental problem, is timid, has not bothered to think things out, or he is lazy. There is no flapping reason he cannot listen to what the CRA dude said and go apply for the loan.
He will either get it or not, and if he does get the loan… problem solved. If he does not get the loan, show the loan application to the CRA collections officer and he will get a payment plan.
You are worried about 29% interest, which is higher than what it really would be… so you would rather pay 100% of your income, rather than to pay high interest. You my friend are not thinking clearly. I could send you a to a trustee, but he would tell you the same thing I am telling you.
You have the resources to pay the tax bill by borrowing, or a payment plan, but for some reason you would rather cause your worst nightmare by sticking your head in the sand, than walking down to a bank. And by the way; You said that you earn a decent income, so don’t even dream of offering a measly $100 per month to CRA. Think in terms of $500 per month.
Yes… you could go bankrupt… and you might have to, unless you get proactive.
You may not like what I wrote, but it is done out of kindness… if you don’t wake up and smell the burning toast and pop the latch, you are going to be compost material when CRA gets done with you.