Tax season is here, and for some Canadians, that means owing money to the Canada Revenue Agency (CRA). If you have a tax balance owing, it’s important to know your payment options, what to do if you can’t pay in full, and how to avoid penalties and interest.
At Nguyen Scott LLP, we help individuals and businesses navigate their tax obligations, set up payment plans, and minimize financial strain. Don’t let unpaid taxes become a burden—know your options and take action today!
📞 Need help with CRA payments or tax planning? Contact us!
📍 St. Albert & Leduc: 780-458-5479
📍 Drayton Valley: 780-542-9292
💻 Visit us at nsllp.ca
How to Pay Your CRA Balance
If you owe money to the CRA, you can make payments in several convenient ways:
1️⃣ Online Banking
🏦 Pay through your bank or credit union’s online banking, mobile app, or telephone banking.
💡 How to pay:
- Add “CRA” as a payee (e.g., CRA – Tax Payments)
- Use your Social Insurance Number (SIN) or Business Number (BN) as the account number
- Select the correct tax year and payment type (e.g., personal tax, business tax, GST/HST, payroll)
2️⃣ CRA My Payment (Visa Debit & Debit MasterCard)
💳 Use the My Payment service on the CRA website to pay directly with Visa Debit or Debit MasterCard.
💡 How to pay:
- Log in to CRA My Account
- Choose My Payment
- Select your tax payment type and complete the transaction
3️⃣ Pre-Authorized Debit (PAD) Agreements
🔄 Set up a pre-authorized debit (PAD) agreement with the CRA to automatically withdraw payments on specific dates.
💡 Benefits:
✔️ Manage payments yourself in CRA My Account
✔️ Flexible scheduling—set up a one-time or recurring payment
✔️ Avoid missed payments & late fees
4️⃣ Pay at Canada Post (Using QR Code)
📌 Make a tax payment in person at participating Canada Post locations using cash or debit.
💡 How to pay:
- Generate a QR code in CRA My Account
- Take the QR code to a Canada Post office and make the payment
5️⃣ Pay at a Financial Institution (Bank or Credit Union)
🏦 You can make a payment at your bank, but you’ll need a personalized CRA remittance voucher.
💡 How to get one:
- Request a voucher online in CRA My Account
- Contact CRA directly to request one by mail
What If You Can’t Pay Your Full Tax Balance Right Away?
The CRA understands that some people may struggle to pay their taxes in full, so they offer payment arrangement options.
1️⃣ Set Up a Payment Plan Online
🔹 Use the Payment Arrangement Calculator (PAC) in CRA My Account to schedule payments over time.
🔹 Pre-authorized debit agreements can be set up directly online without calling the CRA.
2️⃣ Call CRA’s Automated Payment Arrangement Line
📞 Dial 1-866-256-1147 to use the CRA TeleArrangement Service, where you can schedule a series of payments based on your financial situation.
3️⃣ Request Relief from Penalties & Interest
⚠️ In special cases, you may qualify for penalty and interest relief if you can prove your financial hardship is due to circumstances beyond your control.
💡 Examples of eligible circumstances:
- Job loss or unexpected medical expenses
- Natural disasters
- Errors made by the CRA
To apply for relief, visit “Cancel or waive penalties and interest” on the CRA website.
What Happens If You File Your Taxes Late?
Even if you can’t pay in full, you MUST file your return on time to avoid hefty late-filing penalties.
📅 Key Deadlines:
- April 30, 2025 – Personal tax filing deadline & balance due
- June 16, 2025 – Deadline for self-employed individuals to file (but payment still due by April 30)
If you miss the April 30 deadline and owe money, the CRA will charge:
❌ 5% penalty on the balance owed when the return was due
❌ 1% additional penalty per month, up to 12 months
🚨 If you were charged a late-filing penalty for 2021, 2022, or 2023, your late penalty for 2024 could be higher:
❌ 10% of the balance owing
❌ 2% per month, up to a maximum of 20 months
💡 Even if you can’t pay your full balance, filing on time will save you money by avoiding these penalties!
Key Takeaways: How to Pay the CRA & Avoid Penalties
✔️ Multiple payment options: Online banking, CRA My Payment, pre-authorized debit, Canada Post, and in-person banking.
✔️ If you can’t pay in full, set up a payment plan: Use the CRA’s Payment Arrangement Calculator (PAC) or call 1-866-256-1147.
✔️ File your taxes on time, even if you can’t pay: Avoid late penalties and interest charges.
✔️ Request penalty & interest relief: If financial hardship prevents you from paying, you may qualify for CRA assistance.
📞 Need Help with CRA Payments or Filing? Contact Nguyen Scott LLP Today!
If you owe taxes and need guidance, our team at Nguyen Scott LLP can help you navigate payment options, avoid penalties, and manage tax debt effectively.
📍 St. Albert & Leduc: 780-458-5479
📍 Drayton Valley: 780-542-9292
💻 Visit us at nsllp.ca