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Will Canada Revenue Agency seize my tax refunds if I go bankrupt?
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Unfortunately, if you owe income tax the answer is yes
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If you owe income taxes, CRA can seize any tax refund otherwise owed to you for the years prior and
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including the year of your proposal. For example, if a debtor owes taxes for the 2008 and
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2009 tax years and files a consumer proposal in March 2011
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Any refund they are due for the 2010 tax year, the year prior to the proposal, and the
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2011 tax year, the year of the proposal, will be seized by CRA against the amount owed to them
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After the proposal year all further refunds are sent to you
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