Can the government collect a debt I owe differently than a private creditor in Ontario?

Yes. Government creditors — particularly the Canada Revenue Agency (CRA) — have enforcement tools that private creditors do not. The CRA, for example, can garnish wages and bank accounts without first obtaining a court judgment. It can issue a Requirement to Pay directly to your employer or bank, which requires them to remit funds to the CRA. The CRA can also register a lien on your real property through a federal process, and it can withhold or redirect government refunds and benefits.

For Ontario-administered debts — such as certain provincial tax debts and government overpayments — the province similarly has statutory enforcement powers that bypass the civil courts in some circumstances.

Private creditors, by contrast, must obtain a court judgment before using tools like wage garnishment or bank garnishment. This is a significant practical difference: a private creditor cannot touch your wages or bank accounts until after a successful lawsuit.

Consumer proposals and bankruptcy do provide some protection against CRA debts and can discharge income tax debts in certain circumstances, but the CRA retains priority for certain types of tax debts, and the rules are technical. If you owe money to the CRA or another government body and are struggling to pay, contact a lawyer or a Licensed Insolvency Trustee promptly. There are often payment arrangement options available, and acting early tends to produce better outcomes.