Filing Your Return -> GST/HST -> CRA Witholding Refund or GST/HST Credit
Can CRA Withhold my Income Tax Refund or GST/HST Credit?
Income Tax Act s. 164(2)
The answer to this is yes, Canada Revenue Agency (CRA) can withhold a refund and/or GST/HST credit, if:
- the taxpayer has an income tax liability outstanding for another taxation year
- the taxpayer is in debt to a federal, provincial or territorial government
- CRA is ordered to do so under a garnishment order under the Family Orders and Agreements Enforcement Assistance Act
- the taxpayer has any outstanding GST/HST returns from a sole proprietorship or partnership
For more detail see the CRA web page on Refunds.
Revised: May 21, 2020
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