Question: Me and my twin opened a drywall company as sole partners. Since we have been in business no taxes have been paid but did file for the 2 years. The amount owing is around $80,000. Our business is still running strong bringing in around $75,000 each after all deductions. What is the best solution while avoiding bankruptcy?
Answer: The first option would be to determine, based on your cash flow, how much you can afford to send to Canada Revenue Agency each month. If you can afford to send them $5,000 per month, you will have the debt paid in 16 months. Obviously the faster you pay it the better, because at some point Revenue Canada will contact you looking for their money.
If you cannot make payment arrangements, you may have no choice but to consider a proposal or bankruptcy, but repaying it on your own is the best option if possible.