YES ! THEY WILL ACCEPT A SETTLEMENT FOR UNPAID TAXES AND INCOME TAXES
Most lawyers and accountants, at one time or another, have tried to negociate, on behalf of their clients, with Revenue Canada or the Minister of Revenue for Quebec on partial payment of fiscal debts, thus avoiding bankruptcy. It was not a viable plan to help people settle with Revenue Canada since it was limited to those with health problems or similar cases. The professionals who tried to settle with Revenue Canada were not successful because it is not at the discretion of Revenue Canada personel to reduce income and asset taxes. The same applies to the Minister of Revenue for Quebec.
However, if a company or a person makes an proposal pursuant to the Bankruptcy and Insolvency Act, even with Revenue Canada or the Minister of Revenue for Quebec as the major creditors, the fiscal authorities will consider the case on its own merit. If the proposal is reasonable, they will accept.