Plain meaning
A legal or administrative tool requiring a third party to pay amounts toward a debtor's obligation rather than to the debtor.
Also called
wage garnishment
garnishment
Key points
- CRA collection often uses a requirement to pay, which functions similarly to garnishment.
- A third party such as an employer, bank, customer, or tenant may be required to redirect payments.
- Collection tools are distinct from assessments and objections, although they may follow from an assessed debt.
- Taxpayers should distinguish between disputing the underlying tax and responding to collection action.
Why it comes up
In tax collection, garnishment-style tools can affect wages, bank accounts, receivables, and business cash flow.