What to do if you can’t pay your taxes

If you ignore your tax debt, it will grow with interest charges and penalties. Penalties only apply if you file late or pay by installments and your installment payments are late or less than the required amount. Debts associated with COVID-19 Individual Emergency Benefits overpayments will not have penalties or interest assessed against the amount owing.

The tax-filing deadline for most individuals is April 30, 2022

Since April 30, 2022, falls on a Saturday, your return will be considered filed on time in either of the following situations:

  • received on or before May 2, 2022

You have until June 15, 2022, to file your return if you or your spouse or common law-partner are self-employed.

The payment deadline is April 30, 2022

If you have a balance owing, your payment is due on April 30, 2022. Some taxpayers may receive Notices of Redetermination from the CRA over the next two years that are related to Individual Emergency Benefits overpayments. If you receive such a notice, you should follow the payment directions provided in the letter.

If you or your spouse or common law-partner are self-employed, your payment is still due on April 30, 2022.

Since April 30, 2022, falls on a Saturday, in both of the above situations, your payment will be considered paid on time if we receive it, or it is processed at a Canadian financial institution, on or before May 2, 2022.

If you filed your 2020 return and qualified for interest relief, you have until April 30, 2022, to pay any outstanding income tax debt for the 2020 tax year to avoid future interest charges. This applies to the tax owing for the 2020 tax year only, and not for any previous tax year.

Partial payment

You can make partial payments to the Canada Revenue Agency (CRA) to reduce the amount of interest you need to pay on unpaid amounts. To see all the payment options or to make a partial payment, go to canada.ca/payments.

Payment arrangement

If you can’t pay your taxes in one payment, you may be able to set up a payment arrangement. A payment arrangement is an agreement between you and the CRA. It allows you to spread out your payments over time, based on your ability to pay, until you’ve paid your debt and interest in full. In order to help Canadians during the COVID-19 pandemic, the CRA has expanded its payment arrangement rules. These expanded rules are still in effect. You can work with us on a payment arrangement that fits your situation.

TeleArrangement service

You can also make a payment arrangement by calling the CRA’s automated TeleArrangement service at 1-866-256-1147. When you call, you’ll need to give:

  • your social insurance number;
  • your date of birth; and
  • the amount on line 15000 of your last notice of assessment.

The TeleArrangement service is available Monday to Friday (except holidays), from 7 a.m. to 10 p.m., Eastern time.

You can also call the CRA’s debt management call centre at 1-888-863-8657 to speak to an agent. Agents are available Monday to Friday (except holidays) from 7 a.m. to 8 p.m., Eastern time.

Pay by pre-authorized debit

You can authorize the CRA to withdraw a certain amount directly from your bank account, on dates of your choosing, through one of the following:

You can set up a pre-authorized debit agreement or generate a QR code for paying at a Canada Post outlet.

Keep in mind it takes five business days from when you first set up a pre-authorized debit to when your funds will be processed. Also, you can’t cancel the debit agreement within the five days before it’s due. To use this service, you need to register for My Account, My Business Account or the MyCRA mobile web app.

Unable to pay?

You must tell the CRA as soon as possible so that we can work with you to find a workable payment arrangement. Keep in mind that interest compounds daily, at the rate set by law, until you pay the amount you owe in full. Go to When you owe money – collections at the CRA for more information.

In some circumstances, you may ask for relief from penalties and interest, and reduce the amount you owe. Go to canada.ca/penalty-interest-relief for more information.

Cryptocurrency – Tax Implications

A cryptocurrency is a type of virtual asset that is protected using cryptography. It typically uses a system called a blockchain to record and keep a history of transactions. Cryptocurrencies, such as Bitcoin and Ether, are independent, meaning they do not rely on governments, central banks, or other central authorities for backing. You can obtain cryptocurrency in many ways, and new methods are being developed all the time. You can use cryptocurrencies for a wide range of activities, such as buying goods, paying bills, or investing. Transactions involving cryptocurrencies often have tax implications.

Disposing of cryptocurrencies

In general, possessing or holding a cryptocurrency is not taxable. However, there may be tax implications when you dispose of your cryptocurrency. Examples of this could include:

  • selling or trading it
  • giving it as a gift
  • converting it to government-issued currency, such as Canadian dollars
  • using it to buy goods or services

Examples of the tax consequences

The types of taxes that apply to your cryptocurrency transactions include taxes on:

  • Business income
    • Generally, if disposing of cryptocurrency is part of a business, the profits you make on the disposition or sale are considered business income and not a capital gain. Buying a cryptocurrency with the intention of selling it for a profit may be treated as business income.
  • Capital gains
    • If the sale of a cryptocurrency is not for carrying on a business, and the amount it sells for is more than the original purchase price or its adjusted cost base, then the taxpayer has a capital gain.
  • Goods and Services
    • Where a taxable property or service is exchanged for cryptocurrency, the GST/HST that applies to the property or service is calculated based on the fair market value of the cryptocurrency at the time of the exchange.

To ensure correct reporting, keep accurate records of your purchases and sales dealing with cryptocurrency, including records that show how you calculated the fair market value.

How to correct your tax affairs

If you did not report your income or capital gains from transactions in cryptocurrency, you may have to pay tax, penalties, and interest on that income or capital gain. You can avoid or reduce penalties and interest by voluntarily correcting your tax affairs. To correct your tax affairs (including corrections to GST/HST returns) and to report income that you did not report in previous years, you may:

More information

You can find more information on your tax obligations related to your cryptocurrency activities in the Canada Revenue Agency’s Guide for cryptocurrency users and tax professionals.