“Bummer, I owe the CRA money! How do I pay them?”
Whether you have taxes owing for this year or you are a business owner who needs to settle a debt, handle it like a boss and pay the CRA to avoid late fees and any legal trouble.
Here are some ways you can pay the CRA, whether you are an individual or a business:
The Canada Revenue Agency (CRA) is getting hip by being down with the online payment world!
The CRA prefers to receive electronic payments. It’s fast and easy! You can do it two ways:
Make a payment using your financial institution’s online banking services:
- Sign in to your financial institution’s online banking service (RBC Royal Bank, TD Canada Trust, Vancity, etc). Bank with another financial institution? See the complete list of banks that can be used on the My Payment service here.
- Under “Add a payee,” look for an option such as: CRA (revenue)-current year-tax return. CRA (revenue)-tax amount owing. CRA (revenue)-tax installment.
- See other available options under “Add a payee” that are not listed above here.
- Business: Specify payroll, GST, Corporate Tax
- The account number for personal: SIN number
- The account number for business: Business number
Pay via CRA’s My Payment service:
- The amount that you can pay will be restricted by your daily banking limit for online transactions
- Click on “Start my Payment” here to make an electronic payment.
Offline payment methods:
Remeber these ones take more time so be sure to give yourself a head start if you want to avoid late payment penalties.
- In-person (at the bank): You cannot walk into the bank to pay without the remittance voucher. The CRA does not mail them our anymore to encourage people to take advantage of their speedy, secure online payment option.
- We can provide all our existing clients with a remittance voucher for their personal taxes which they need to take to their financial institution to pay.
- Photocopy an old remittance voucher that you have, or call the CRA and request the mail one to you. Just know the process takes more than 10 business days, and that might cause you incur late penalties.
- Mail a personal cheque: In the memo, indicate account number (SIN for personal or business number for self-employed). Attach a letter to let CRA know what you are paying.
For information about your account balance and payments, including installments, see My Business Account.
When completing your return, you may calculate a balance owing on line 485. Your balance is due no later than April 30, 2018. When a due date falls on a Saturday, a Sunday, or a holiday recognized by the CRA, your payment will be considered on time if the CRA receives it or it is postmarked on the next business day.
Generally, if this amount is $2 or less, you do not have to make a payment.
If you owe tax for this current tax year, and you file your return after the filing due date, the CRA will charge a late-filing penalty.
They start charging compound daily interest on any outstanding balance starting May 1, 2018, until you pay it in full.
If you can’t pay the full amount you owe, take action right away and call the CRA arrange a payment plan.
For a full list of payment options, go here.
Get in touch with us if you have any concerns here.