If you have a balance owing to the Canada Revenue Agency (CRA), we recommend that you pay electronically. For your convenience, here is a “How To” guide outlining two online payment options available to you.
• Sign in to your financial institution’s online banking service.
• Under add a (bill) payee, look for CRA (revenue)-(2014)-tax owing.
• Be sure to enter your account number (your social insurance number) carefully to avoid a lost or misapplied payment.
• The payment may take two to three days to be processed so make your payment in advance to ensure timely receipt.
• Some financial institutions (specifically those outside the Big Five Canadian banks) may not support online payments. We recommend checking to see if you can add the CRA as a bill payee in advance to confirm that your financial institution supports the service.
• Use the CRA’s My Payment service to pay with your debit card through Interac® Online.
• Only BMO, Scotiabank, RBC, TD, Envision Financial, and Libro Credit Union support the My Payment function
• Remember: Your transaction total is subject to your daily or weekly limit as determined by your financial institution.
If your personal income tax return is filed late (even by a day) you’ll automatically be assessed a 5% penalty on the balance owing. For every full month your return is late you’ll be assessed an additional 1% penalty up to a maximum of 12 months. In total this means you could be assessed a 17% (5% + 12%) penalty on the balance owing on your return. Late or insufficient payments are also subject to interest currently at a rate of 5% (subject to change on a quarterly basis).