Moves are afoot by City officials to aggressively go after $50 million in back taxes owed by some major non-paying companies.

The City is targeting the tax arrears of 30 of the worst companies that owe more than $50 million in back taxes and other arrears.

Some complain priority can be placed on collecting the sum owed for use to fund City services.

Documents filed to a General Government Committee by City financial staff last month shows the 30 worst companies owe more than $500,000 each to City coffers.

The ‘amount of arrears relating to properties under Court-supervised Receivership has significantly increased as a result of post-COVID shifts in the real estate market and increases in interest rates,’” according to a report.

“Tax receivables will continue to be monitored and acted upon in a timely manner,” according to the City.  “The largest debtor accounts continue to be a priority for collection.”

The report points to one company that owes a whopping $12 million in back taxes. There are others owing the City millions of dollars.

Staff provided a list of companies who owe the largest sums in taxes. Three of the firms are from South Etobicoke.

It said the City’s Revenue Services go after the non-payers though collection procedures as the mailing of overdue notices, telephone contact and bring in bailiffs to collect unpaid property taxes. The business can ultimately be put up for sale.

The City charges 15% interest per year on overdue taxes. Penalties are applied at a rate of 1.25% on the first day of default and at the beginning of every month thereafter.