Yes. If you have income tax debt, you can declare bankruptcy on taxes owing. In Canada, tax debts are treated the same as any other type of unsecured debt, such as a credit card or a personal line of credit. If you successfully complete a bankruptcy, all tax debt will be cleared. However, filing for bankruptcy is often a last resort for getting out of debt and it may not be your only solution. A Licensed Insolvency Trustee can walk you through your options, so you can determine the best path to take.