Can You Use a Loan to Pay Your Tax Debt in Canada? Pros and Risks

Author : Canprosys Consultants | Published On : 14 Sep 2026

The borrowing however does not eliminate the debt. Rather it shifts the responsibility of the Canada Revenue Agency to a lender.

This is why loans to pay off tax debt Canada must be considered carefully. The correct choice is subject to the fact that the new loan is actually likely to make repayment cheaper or this loan serves as a means of minimizing your total cost of borrowing.