Few (if any) people get excited about the opportunity to pay more tax. On the other hand, it may very well be helpful to have a variety of options for making payments for the tax you do owe.
As in the pre-internet days, you can send a cheque by mail to the Canada Revenue Agency (CRA), or hand deliver it at your local financial institution. Either way, your cheque must be accompanied by a personalized remittance voucher, which can be ordered by phone or online from CRA.
Of course, if you are capable of ordering a remittance voucher online – which requires you or your designated representative to navigate the ‘My Account’ or ‘Quick Access’ gateway – then you may find it more convenient to avail yourself of one of the online payment methods.
Standing online payment methods
None of the following methods require a remittance voucher.
Most financial institutions include CRA as a payee in their online banking/billing system. Look in the list of payees for something like “CRA (revenue)-(2013)-tax owing”. This will ensure that the payment not only makes it there, but is also applied to the correct purpose (rather than being used against a past due amount or current installments, for example). Your own biller ID will be your social insurance number.
Alternatively, you can make your payment directly with CRA by registering and logging into its ‘My Payment’ service. It’s like using your debit card online through Interac, so the money will actually have to be in your institution’s account for this to be processed. Presently, only four banks participate in this program: BMO, RBC, TD and Scotiabank.
Scotiabank is the lone institution designated by CRA to receive payments on its behalf from non-residents, whether by online payment or wire transfer. Canadian residents may not use a wire transfer.
PAD your payment
The latest addition to payment options is pre-authorized debit, or PAD, available through the ‘My Account’ service. Once logged in, look for the bright red “NEW” flag in the left margin to create a new PAD agreement. It will take five business days to process, so don’t leave it to the last minute.
Through PAD you can make a single payment or a series, for income tax, child and family benefit repayments and more. In fact, you can file your tax return early and authorize a PAD in time for April 30 … Even if your tax return is processed later, no interest will be charged and the withdrawal will be processed on the appropriate date.
And if you’re feeling this leaves you a bit too exposed, rest assured that CRA can only take payments for the purposes and amounts per your instructions.
If debit, why not credit?
CRA does not accept credit card payments directly. It does however allow payments to be made through third-party service providers where your payment to them may be made using a credit card.
While there are many third-party providers that send payment and remittance details online to the CRA (eg., source deductions taken by payroll managers), the only currently registered company that accepts credit card payments is Plastiq. Of course you will pay a fee to any third-party provider for their service.
As well, be aware that the day you make your payment to a third-party provider is not generally the same date that payment is received by the CRA. Familiarize yourself with your service terms so that your payment is in by the payment due date, else you may face late fees.