Methods of Tax Payment after CRA Changes Requirements over $10,000

FRIDAY, NOVEMBER 4, 2022

Effective January 1, 2024 the CRA will charge a $100 penalty for each tax remittance over $10,000 paid by cheque or mail. To avoid penalties options 1 and 2 below should be used for all payments over $10,000. For payments under $10,000 all 4 options work.

1. Online Banking

Both individual and business taxes can be paid through your institutions online banking system. You have the option of pre-setting your payment date - in order to set up your individual payment, login to your financial institutions online banking system and select ‘Add a Payee’. The drop-down menu will include an option that says ‘CRA (revenue) - tax instalment/amount owing/current year tax return’, and enter your nine-digit social insurance number as your CRA account number.

The set up for business payment is nearly identical - login to your financial institutions online banking system, select ‘Add a Payee’, and select the option ‘ Federal - TXINS/GST-T/EMPTX’/Canada emergency wage subsidy repayment’. Enter your 15-digit business number as your CRA account number.

For a detailed description of the proper ‘Add a Payee’ option to select click here.

2. Pay by Debit Card, Credit Card, PayPal or Interac

Use a third-party service provider which has payment by credit, debit, PayPal or Interac - the vast majority of Canada financial institutions allow this type of payment. Your provider will send your individual and/or business remittance details to the CRA on your behalf. Your financial institution may charge a transaction fee, but the CRA does not and processing time is normally between 1-3 days.

You can pay via this method directly here.

3. Pay in Person (for under $10,000)

To pay in person, you need a personalized remittance voucher. You can order your remittance voucher here. Once an order has been placed it takes approximately 5 to 10 business days for you to receive it by mail.

You can pay at your Canadian bank, financial institution or credit union.

4. Pay by mail (for under $10,000)

Once you have received your remittance voucher, you also have the option of mailing it along with your cheque or money order to the CRA. The cheque should be made payable to the Receiver General for Canada, and mailing address is: Canada Revenue Agency, PO Box 3800 STN A, Sudbury ON P3A 0C3.

If you have any questions, please call your RMT representative.