Putting a lien on or seizing your assets – Debt collection at the CRA

When we secure a debt, it means we put a lien or charge against property owned by a taxpayer to protect the government’s interest until the debt is paid in full.

A lien is a legal claim that we put against a property to secure the payment of a debt. We can seize or force a sale of the property to pay the debt if the individual or business doesn’t make payments. In most cases, we will remove the lien when the debt is paid.

Once your debt is certified, we can register a lien against your assets and property. Registering a lien will secure the amount of debt you owe to us. This establishes our priority as a creditor when an asset is sold. It means your debt will be automatically paid with the funds from the sale, before you receive any proceeds.

If your legally certified debt is still unpaid, we may get a writ or memorial. This would allow us to seize and sell your assets and property.

If we sell your assets, we will use the proceeds to pay:

• Your debt
• Any costs charged by the bailiff hired to sell the assets on our behalf

You will still have to pay any remaining debt.

A writ is a written command or formal order in favour of the government. It's issued by the Federal Court and gives directions to a sheriff or bailiff to seize and sell the assets of an individual or a business. In some provinces, a writ is used to put a lien or charge against real property registered to a debtor.

A memorial is a document issued by the court. In some provinces, we ask for a memorial so we can put a charge or lien on property owned by a debtor.

When you owe a customs debt, or when your customs accounts are not in good standing, we don’t need to legally certify the amount to take collections actions.

We may:

• Make a claim against your posted security
• Apply a lien that will prevent the release of goods you import
• Require you to pay the duties and taxes on imported goods at the time they are released