One of the most common questions we hear from our clients is “How Do I Make a Payment to the CRA?”
Day in and day out thousands of hardworking individuals around Canada are working to make a living. Whether it be through employment, self-employment, or business activities many people find themselves owing money to the CRA for one reason or another. Whether this is the first time you had extra time owing at the end of the year or you’re looking to change the way you make your payment, the following payment options will let you pay your taxes in the most efficient manner possible.
You can make payments through the Canada.ca website using qualifying debit cards through Interac® and debit credit cards, such as Visa® debit or debit Mastercard®. Currently, only some of the major banking establishments are registered to accept payments. If you make regular tax payments and would like to automate this, the CRA also provides a method to pre-authorize debit payments. Your ‘my business account’ will allow you to access the option and set up pre-payments so that you can set it ahead of time and worry less about payments in the future.
Similar to the debit payments options, CRA accepts online banking payments through authorized banking providers. With online banking services, you can remit income tax owing, HST, and even payroll deductions. When you add a payee you will need to look for a payee that matches the amount you are looking to pay. The name of the payee will likely appear as:
- CRA (revenue)-tax owing
- CRA (revenue)-past tax owed
- CRA (revenue)-tax instalments
The exact name will differ slightly depending on the item you are paying for and the banking establishment you are paying through.
The CRA does not accept direct credit card payments, but they have authorized a third party to remit tax payments to the CRA on behalf of the tax-payer. If you are looking to make a payment using a credit card you can use the online service on www.Plastiq.com/cra to make your payment. There is a small fee associated with Plastiq’s services of 2.5% of the amount transferred.
At Your Banking Establishment
After you have filed your tax file you will receive a voucher of some sort stating the amount of tax that you have owing. In the case of your year-end income tax return, this would be in your notice of assessment or reassessment. If you have not received a voucher or aren’t sure where that’s runoff, you can request another one to be sent to you through your online account or by calling: 1-800-959-8281 (individuals) or 1-800-959-8281 (self-employed/businesses). Note that you will require an original copy of the voucher, since the bank checks for the magnetic ink before processing the payment.
If you are the type of person who prefers sending your payment directly to the CRA without using a third party you can send a cheque or money order by mail to the Canada Revenue Agency, 875 Heron Road, Ottawa ON K1A 1B1. When using this method you need to make sure to include a remittance voucher with the payment. Also, make sure that the payment is made out to “Receiver General of Canada” and that on the memo line you include information identifying the payment being made.
In the end, there are many options available to suit your needs and no matter which option you decide upon, making timely payments is important to avoid having to pay additional penalties and fees that can really add up. For more information about how to pay the CRA has organized the payment methods for different taxes on their website: Determine Your Payment Method.
This site provides general information on various tax issues and other matters. The information is not intended to constitute professional advice and may not be appropriate for a specific individual or fact situation. It is written by the author solely in their personal capacity and cannot be attributed to the accounting firm with which they are affiliated. It is not intended to constitute professional advice, and neither the author nor the firm with which the author is associated shall accept any liability in respect of any reliance on the information contained herein. Readers should always consult with their professional advisors in respect of their particular situation.
August 25, 2017