Whew! Congratulations on a successful year. As a result of your success, you now have a tax bill to pay. You’ve got multiple choices to pay your personal, corporate and HST tax balances and instalments.
And The Winner is ….Bill Payment via Online Banking
Using the tax bill payment function in your Canadian bank account is the clear winner for tracking, convenience and simplicity. Simply add CRA to your bill payment list using your Social Insurance Number to pay. For business payments, you made need your bank to turn on Pay Business Taxes as a function. As a caveat, CRA is very particular about the period to apply the payment to; please choose the appropriate period.
Pay by Cheque – The Old Reliable Method
Please make all cheques payable to the Receiver General. CRA and the Receiver General accept payments via cheque mailed to your local tax center. Please make sure to write your account number on the front and back of the cheque to ensure the payment is applied properly to your account. Save all returned cheques until you see the payment applied in your online account. The mailing address for the Sudbury tax center is:
Canada Revenue Agency – Sudbury Tax Centre
1050 Notre Dame Ave
In branch – teller payments
You can take your Notice of Assessment or HST Voucher to the bank and pay directly at the teller. Old school, reliable but time consuming. We provide a T1 Remittance form that you can taker into the branch.
My Payment – electronic service
My Payment is an electronic service that lets you make payments directly to the Canada Revenue Agency (CRA) using your bank access card. You cannot use credit cards with My Payment. This service is currently available only to TD and RBC clients.
CRA Pre-Authorized Debit
Using CRA My Account you can sign up for CRA Pre-Authorized debit by providing your banking information that can be obtained through online banking or from your cheque details. (Bank or Institution Number, Transit and Account Number needed)
Payment Evolution and other electronic payment providers offer CRA payment options in addition to their bill payment functions.
A Note on Instalments
if your net tax owing is over $3,000 per year, you are required to make periodic instalment payments to pre-pay your current year taxes. We highly recommend paying your instalments when advised. CRA will assess interest on missed instalments; these instalments are non-deductible for taxes. That’s a horrible way to spend your money. Instalments are the best for cash flow management, budgeting and savings.
Still confused? Give us a call and we can help.