If you cannot pay the full amount of taxes you or your company owes, you may qualify for a payment arrangement or ask for taxpayer relief. Contact the Canada Revenue Agency (CRA) as soon as possible to make arrangements. Ignoring your debt won’t make it go away.
What are your options?
The CRA can work with you to set up a payment arrangement in My Account, My Business Account, MyCRA, or CRA BizApp. The sooner you take action, the less interest you’ll have to pay. To make a payment arrangement for you or your business, go to Pay by pre-authorized debit or contact them directly.
What is a payment arrangement?
A payment arrangement with the CRA lets you make smaller payments over time, until you have paid your entire debt, including interest. The CRA has two new tools that can help you manage your tax debt. Try out our new Payment Arrangement Calculator, which you can use to estimate your payments and the time needed to reduce your debt to zero. The CRA has also introduced an Income and Expense Worksheet. This worksheet will help you calculate the part of your net income that is available to pay your tax debt. To help the CRA determine your ability to pay, you may have to give details of your financial situation and proof of your income, expenses, assets, and liabilities.