Can CRA withhold my income tax refund or my GST/HST credit?
The answer to this is yes, Canada Revenue Agency can withhold a refund and/or GST/HST credit, if:
- he taxpayer has an income tax liability outstanding for another taxation year
- The taxpayer is in debt to a federal, provincial or territorial government
- Ordered to do so under a garnishment order under the Family Orders and Agreements Enforcement Assistance Act
For more detail see the CRA web page on Refunds.