The Canada Revenue Agency is currently updating its webpages and Form T2200 for the 2023 tax year. The updated form, which will be made available at the end of January 2024, along with other T1 related forms, will be easier to complete for employees who are only claiming a deduction for home office expenses. Eligible employees who worked from home in 2023 will be required to use the detailed method which was the method used to claim home office expenses prior to the pandemic. Eligible employees who worked from home due to the COVID-19 pandemic could use a temporary flat rate method to claim home office expenses for the 2020, 2021, and 2022 tax years. This temporary flat rate method does not apply to the 2023 tax year.
personal taxes
Reporting requirements for the Canadian Dental Care Plan
he Canadian Dental Care Plan (CDCP) will provide dental coverage for uninsured Canadians with an adjusted family net income of less than $90,000. There are new reporting requirements that begin with the 2023 tax year for issuers (including employers and pension plan administrators) of the T4 Statement of Remuneration Paid and T4A Statement of Pension, Retirement, Annuity, and Other Income. For more information on the requirements for the CDCP visit Employers and pension plan administrators: Changes coming to T4/T4A reporting – Canada.ca.
First Home Savings Account (FHSA)
A first home savings account (FHSA) is a registered plan allowing a prospective first-time home buyer to save for your first home tax-free (up to certain limits). You can open an FHSA with your bank starting April 1, 2023. Contributions that you make to your first home savings accounts (FHSAs) are generally deductible on your income tax and benefit return. How it works:
- Annual contributions of up to $8,000 can be made, and are tax-deductible.
- Unlike RRSPs, only contributions made within the calendar year (not within the first 60 days of the following calendar year), or contributed and not deducted in a previous tax year, can be claimed as a deduction for that calendar/tax year. Similar to RRSPs, contributions made can be carried forward indefinitely and deducted in a later tax year instead of being deducted in the year the contribution is made.
- You can open an FHSA with bank, credit union, or a trust or insurance company. Your issuer will advise you on the types of FHSAs and the qualified investments they can contain
- Unused contribution room can be carried forward, but only to a maximum of $8,000.
- The lifetime contribution limit is $40,000.
You can withdraw all of the property from your FHSAs tax-free if you meet all the following criteria:
- you must fill out Form RC725, Request to Make a Qualifying Withdrawal from your FHSA and give it to your FHSA issuer .
- you must be a first-time home buyer
- you must have a written agreement to buy or build a qualifying home with the acquisition or construction completion date of the qualifying home before October 1 of the year following the date of the withdrawal
- you must not have acquired the qualifying home more than 30 days before making the withdrawal
- you must be a resident of Canada from the time that you make your first qualifying withdrawal from one of your FHSAs until the earlier of the acquisition of the qualifying home, or the date of your death
- you must occupy or intend to occupy the qualifying home as your principal place of residence within one year after buying or building it
Canada Revenue Agency (CRA) Employees Strike
On April 19, 2023, the Union of Taxation Employees (PSAC-UTE) members have gone on strike.
As a result of PSAC-UTE’s decision to begin labour action, Canadians should expect that some CRA services will be delayed or unavailable. While there are no plans to extend tax filing deadlines, the CRA will continue to accept all tax returns. Those that are filed digitally, which represent the vast majority of T1 and T2 returns, will largely be processed automatically by our systems without delay.
For information on any impacts to services, Canadians can consult the Contact Us page for more details and current wait times and Labour disruptions impact at the Canada Revenue Agency pages for more information as the situation continues to evolve.
Taxability of Board and Lodging benefits and allowances given to Employees
Board and lodging
You may give your employee board and lodging which means that you provide them with accommodations and, in some cases, food. If you provide only meals to an employee, see Meals.
If you provide free lodging, or free board and lodging, to an employee, the employee receives a taxable benefit. As a result, you have to add to the employee’s salary the fair market value of the board and lodging you provide. Report this amount in box 14, “Employment income,” and in the “Other information” area under code 30 at the bottom of the employee’s T4 slip.
If you provide subsidized lodging, or subsidized board and lodging, to an employee, the employee receives a taxable benefit. As a result, you have to add to the employee’s salary the fair market value of the board and lodging you provide, minus any amount the employee paid. Report this amount in box 14, “Employment income,” and in the “Other information” area under code 30 at the bottom of the employee’s T4 slip.
Exceptions to the rules
There are certain situations that can affect the value of the taxable benefit your employee gets if you provide free or subsidized board and lodging. The exceptions are as follows:
- If you provide board and/or lodging allowances to players on sports teams or members of recreation programs, see the next section
- If you provide board, lodging and/or transportation to an employee who works at a special work site or a remote location, see Board, lodging, and transportation – Special work sites and remote work locations
Board and lodging allowances paid to players on sports teams or members of recreation programs
You can exclude up to $377 (for 2021) per month from income for a board and lodging allowance for a participant or member of a sports team or recreational program if all of the following conditions are met:
- you are a registered charity or a non-profit organization
- participation with, or membership on the team or in the program is restricted to persons under 21 years of age
- the allowance is for board and lodging for participants or members that have to live away from their ordinary place of residence
- the allowance is not attributable to any services, such as coaching, refereeing, or other services to the team or program
Do not report the excluded income on a T4 slip.
Board, lodging, and transportation – Special work sites and remote work locations
It is possible for an employee to work at a location that is both a special work site and a remote work location. However, the benefit can only be excluded from the employee’s income once.
Note
If the special work site is in a prescribed zone, see Board, lodging, and transportation at a special work site in a prescribed zone.
Special work sites
Generally, a special work site is an area where temporary duties are performed by an employee who keeps a self-contained domestic establishment at another location as their principal place of residence. Because of the distance between the two areas, the employee is not expected to return daily from the work site to their principal place of residence.
Note
A self-contained domestic establishment (SCDE) is a house, an apartment, or other similar place of residence where a person usually sleeps and eats. It is generally a living unit with restricted access that contains a kitchen, bathroom, and sleeping facilities. The SCDE must be separate from any other living unit in the same building. A room in a hotel, dormitory, boarding house, or bunkhouse is not ordinarily considered to be a SCDE.
Usually, the GST/HST and PST applies on meals and accommodations you provide to an employee. In certain cases, such as long-term residential accommodation of one month or more, no GST/HST and PST applies. Where the GST/HST and PST does apply, include it in the value of the benefit.
Board and lodging at a special work site
You can exclude from income the value of board and lodging, or an allowance (not in excess of a reasonable amount) for board and lodging, that you provide to an employee who works at a special work site if all of the following conditions are met:
- The employee’s duties required them to be away from their principal place of residence or to be at the special work site
- The employee had to work at a special work site where the duties performed were of a temporary nature
- The employee kept, at another location, a self-contained domestic establishment as their principal place of residence:
- that, throughout the period, was available for the employee’s occupancy, and the employee did not rent it to any other person
- to which, because of distance, the employee could not reasonably be expected to return daily from the special work site
- The board and lodging, or the allowance (not in excess of a reasonable amount) for board and lodging, you provided to the employee had to have been for a period of at least 36 hours. This period can include time spent traveling between the employee’s principal place of residence and a special work site
Note
You can only exclude from income an allowance (not in excess of a reasonable amount) paid to your employee for board and lodging if they incurred the expense.
Transportation
You can exclude from income the value of free or subsidized transportation, or an allowance (not in excess of a reasonable amount) for transportation expenses, that you provide to an employee who works at a special work site if all of the following conditions are met:
- the free or subsidized transportation, or the allowance, was for transportation between the special work site and your employee’s principal place of residence
- the employee’s duties required them to be away from their principal place of residence or be at the special work site for a period of at least 36 hours
- you (or a third party) provided board and lodging, or a reasonable allowance for board and lodging, to your employee for that period
Form TD4, Declaration of Exemption – Employment at a Special Work Site
If all of the conditions listed under Board and lodging noted above are met, you and the employee should fill out Form TD4, Declaration of Exemption – Employment at a Special Work Site. This allows you to exclude the benefit or allowance from the employee’s income. If you fill out Form TD4, do not include the amounts in box 14, “Employment income,” or in the “Other information” area under code 30 at the bottom of the employee’s T4 slip. After you fill out Form TD4 with the employee, keep it with your payroll records.
If all of the above-noted conditions are not met, do not fill out Form TD4. Treat the total amounts as part of the employee’s income. Make the necessary deductions and report the amounts on the employee’s T4 slip. This also applies to any part of an allowance for board, lodging, and transportation that is more than a reasonable amount.
Remote work locations
We usually consider a work location to be remote when it is 80 kilometers or more from the nearest established community with a population of at least 1,000 people.
A location is considered an established community if it has essential services or those services are available within a reasonable commuting distance. Essential services may include access to:
- basic food store
- basic clothing store, with merchandise in stock (not a mail-order outlet)
- accommodation
- certain medical services
- certain educational facilities
Board and lodging at a remote work location
You can exclude from income the value of board and lodging, or an allowance (not in excess of a reasonable amount) for board and lodging that you provide to an employee who works at a remote work location if all of the following conditions are met:
- the employee could not reasonably be expected to set up and maintain a self-contained domestic establishment because of the remoteness of the location and the distance from any established community
- you did not provide a self-contained domestic establishment for the employee
- the board and lodging, or allowances (not in excess of a reasonable amount) for board and lodging, were for a period of at least 36 hours when one of the following situations applied:
- the employee had to be away from their principal place of residence because of their duties
- the employee had to be at the remote work location
Transportation
You can exclude from income the value of free or subsidized transportation, or an allowance (not in excess of a reasonable amount) for transportation expenses, that you provide to an employee who works at a remote work location if all of the following conditions are met:
- The employee’s duties required them to be away from their principal place of residence or to be at the remote work location for a period of at least 36 hours
- The free or subsidized transportation, or the allowance, was for transportation between the remote work location and any location in Canada. If the remote work location is outside Canada, you can exclude the allowance for transportation between that location and any location in Canada or outside Canada
- You (or a third party) provided board and lodging, or a reasonable allowance for board and lodging, to your employee for that period
If you need help determining whether a location qualifies as remote, see Interpretation Bulletin IT-91R, Employment at Special Work Sites or Remote Work Locations.
Form TD4, Declaration of Exemption – Employment at a Special Work Site
When there is an exemption for board, lodging, or transportation allowances you pay to employees who work at a remote work location, do not fill out Form TD4.
Payroll deductions
If you exclude a benefit for board, lodging, and transportation at a special work site or remote work location, it is not a taxable benefit. Do not deduct CPP contributions, EI premiums, or income tax.
Housing or utilities – benefit
If you provide an employee, including the superintendent of an apartment block, with a house, apartment, or similar accommodation rent free or for less than the fair market value (FMV) of such accommodation, there is a taxable benefit for the employee.
You have to estimate a reasonable amount for the housing benefit. It is usually the FMV for the same type of accommodation, minus any rent the employee paid.
In addition, the amount you pay on behalf of, or reimburse to your employee for utilities (such as telephone, hydro, natural gas, water, cable or internet) is also a taxable benefit. This is the amount that you include in the employee’s income as a utilities benefit.
If the employee occupies the accommodation for at least one month, the value of the accommodation is usually not subject to the GST/HST.
Special circumstances that reduce the value of a housing benefit
The following two factors may reduce the value of a housing benefit you provide to your employee:
- Suitability of size
Your employee may have to occupy an accommodation that is larger than they need (such as a single person in a three-bedroom house). To calculate the taxable housing benefit, you can reduce the value of the accommodation to equal the value of accommodation that is appropriate to your employee’s needs (in this case, a one- or two-bedroom apartment or house).
Note
If the accommodation you provide is smaller than your employee needs, we cannot allow any reduction in value.
- Loss of privacy and quiet enjoyment
If the accommodation you provide to your employee contains things like equipment, public access, or storage facilities that infringe on your employee’s privacy or quiet enjoyment of the accommodation, you can reduce the value of the housing benefit. The reduction has to reasonably relate to the degree of disturbance that affects your employee.
These two factors apply in the above order. If both circumstances apply to an accommodation, you should first reduce the value to equal the value of accommodation that suits your employee’s needs. Then, you should apply any reduction for loss of privacy and quiet enjoyment to that reduced value.
Housing or utilities – allowance
If you give your employee an allowance to pay for rent or utilities, include the allowance in your employee’s income as a taxable housing and/or utilities benefit.
Reporting the benefit
Report the taxable benefit for the utilities in box 14, “Employment income,” and in the “Other information” area under code 40 at the bottom of the employee’s T4 slip. Report the taxable benefit for housing in box 14 and in the “Other information” area under code 30.
Taxabilty of Insurance Premiums
The answer to this question is it depends.
These types of insurance follow similar taxing rules:
- group life insurance,
- dependant life insurance,
- accidental death insurance and
- critical illness insurance.
Any premiums the employer pays for employees’ insurance types noted above less the portion the employee pays (either directly or through reimbursements) are taxable benefits.
Here is the link if you wanted additional information: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/group-term-life-insurance-policies-employer-paid-premiums.html.
For short/long-term disability premiums, if the employer pays for the premiums, they are not taxable a benefit. If the employee later gets payouts from this insurance, then it would be taxable (on the T4) normally issued by the insurance company. Conversely, if all employees pay their own short/long-term disability premiums, any benefits they may later receive are tax-free.
Taxability of Gifts, Awards, and Long-service Awards given to Employees
A gift or an award that you give an employee is a taxable benefit from employment, whether it is cash, near-cash, or non-cash. However, we have an administrative policy that exempts non-cash gifts and awards in some cases.
Cash and near-cash gifts or awards are always a taxable benefit for the employee. A near-cash item is one that functions as cash, such as a gift certificate or gift card, or an item that can be easily converted to cash, such as gold nuggets, securities, or stocks. For more information, see Rules for gifts and awards and Policy for non-cash gifts and awards.
Example of a near-cash gift or an award
You give your employee a $100 gift card or gift certificate to a department store. The employee can use this to purchase whatever merchandise or service the store offers. We consider the gift card or gift certificate to be an additional remuneration that is a taxable benefit for the employee because it functions in the same way as cash.
Examples of non-cash gifts or awards
You give your employee tickets to an event on a specific date and time. This may not be a taxable benefit for the employee since there is no element of choice, if the other rules for gifts and awards are met.
You give your employee a voucher (which may be a ticket or a certificate) that entitles the employee to receive an item for a set value at a store. For example, you may give your employees a voucher for a turkey valued up to $30 as a Christmas gift, and for convenience, you arrange for your employees to go to a particular grocery store and exchange the voucher for a turkey. The employees can only use the voucher to receive a turkey valued up to $30 (no substitutes).
Vouchers and event tickets are generally considered non-cash gifts and awards.
A gift card or gift certificate to a movie theatre is not considered an event ticket. It is considered a near-cash gift or an award. With a gift card or gift certificate to a movie theatre, your employee can choose which movie to see and when to see it, or they can use the card or certificate at an arcade or concession stand.
Rules for gifts and awards
A gift has to be for a special occasion such as a religious holiday, a birthday, a wedding, or the birth of a child.
An award has to be for an employment-related accomplishment such as outstanding service, or employees’ suggestions. It is recognition of an employee’s overall contribution to the workplace, not recognition of job performance. Generally, a valid, non-taxable award has clearly defined criteria, a nomination and evaluation process, and a limited number of recipients.
An award given to your employees for performance-related reasons (such as performing well in the job they were hired to do, exceeding production standards, completing a project ahead of schedule or under budget, putting in extra time to finish a project, covering for a sick manager/colleague) is considered a reward and is a taxable benefit for the employee.
If you give your employee a non-cash gift or an award for any other reason, this policy does not apply and you have to include the fair market value of the gift or award in the employee’s income.
The gifts and awards policy does not apply to cash and near cash items or to gifts or awards given to non-arm’s length employees, such as your relatives, shareholders, or people related to them.
For more information on gifts and awards outside our policy, go to Gifts and awards outside our policy.
Value
Use the fair market value (FMV) of each gift to calculate the total value of gifts and awards given in the year, not its cost to you. You have to include the value of the GST in the FMV.
Policy for non-cash gifts and awards
You may give an employee an unlimited number of non-cash gifts and awards with a combined total value of $500 or less annually. If the FMV of the gifts and awards you give your employee is greater than $500, the amount over $500 must be included in the employee’s income. For example, if you give gifts and awards with a total value of $650, there is a taxable benefit of $150 ($650 – $500).
Items of small or trivial value do not have to be included when calculating the total value of gifts and awards given in the year for the purpose of the exemption. Examples of items of small or trivial value include:
- coffee or tea
- T-shirts with employer’s logos
- mugs
- plaques or trophies
Long-service awards
As well as the gifts and awards in the policy stated above, you can, once every five years, give your employee a non-cash long-service or anniversary award valued at $500 or less, tax-free. The award must be for a minimum of five years’ service, and it has to be at least five years since you gave the employee the last long-service or anniversary award. Any amount over $500 is a taxable benefit.
If it has not been at least five years since the employee’s last long-service or anniversary award, then the award is a taxable benefit. For example, if the 15 year award was given at 17 years of service, and then the next award is given at 20 years of service, the 20 year award will be a taxable benefit, since five years will not have passed since the previous award.
The $500 exemption for long-service awards does not affect the $500 exemption for other gifts and awards in the year you give them. For example, you can give an employee a non-cash long-service award worth $500 in the same year you give them other non-cash gifts and awards worth $500. In this case, there is no taxable benefit for the employee.
Note
If the value of the long-service award is less than $500, you cannot add the shortfall to the annual $500 exemption for non-cash gifts and awards.
You can answer a series of questions on our Web site to help you determine if there is a taxable benefit. For more information, go to Rules for gifts and awards.
Awards from a manufacturer
If a manufacturer of goods gives cash awards or non-cash awards to the dealer of the goods, the manufacturer does not have to report the awards on an information slip.
However, if the dealer passes on cash awards to an employee, the dealer has to report the cash payment in box 14, “Employment income,” and in the “Other information” area under code 40 at the bottom of the employee’s T4 slip. If the dealer passes on non-cash awards to an employee, the dealer may not have to report the awards in the employee’s income if the other conditions of the awards policy are met.
If a manufacturer gives a cash award or a non-cash award directly to the employee of a dealer or other sales organization, the manufacturer has to report the value of the award as a benefit using code 154, “Cash award or prize from payer,” in the “Other information” area at the bottom of the T4A slip.
Taxability of Cell Phone and Internet Services Given to Employees
If you provide your employee with a cell phone (or another handheld communication device) that you own, to help carry out their employment duties, the fair market value (FMV) of the cell phone or device is not a taxable benefit.
However, if you reimburse your employee for the cost of their own cell phone (or another handheld communication device), the FMV of the cell phone or device is considered a taxable benefit to the employee. This is the case even if the employee used, lost, or damaged the cell phone or device while carrying out their employment duties.
If you pay for, or reimburse the cost of an employee’s cell phone service plan, or Internet service at home to help carry out their employment duties, the portion used for employment purposes is not a taxable benefit.
If part of the use of the cell phone or Internet service is personal, you have to include the value of the personal use in your employee’s income as a taxable benefit. The value of the benefit is based on the FMV of the service, minus any amounts your employee reimburses you. You can only use your cost to calculate the value of the benefit if it reflects the FMV.
For cellular phone service only, we do not consider your employee’s personal use of the cellular phone service to be a taxable benefit if all of the following apply:
- the plan’s cost is reasonable
- the plan is a basic plan with a fixed cost
- your employee’s personal use of the service does not result in charges that are more than the basic plan cost
You, as the employer, are responsible for determining the percentage of employment use and the FMV. You have to be prepared to justify your position if we ask you to do so.
Note
If you give your employee an allowance for cellular phone or Internet services, the allowance must be included in the employee’s income.
Confirm a representative using My Account or My Business Account
There’s a new way to confirm authorized representatives using My Account or My Business Account. Whether you’re an individual or a business, this easy, two-step digital process will help you protect your tax information and make authorizing new representatives more efficient and secure.
Who is a representative?
Representatives are individuals you authorize to help you or your business manage your tax information. Your representative could be an accountant or lawyer, or a family member or friend. An authorized representative may be able to view, get information about and update some or all of your tax information.
It’s important to know who your representatives are and what information they have access to. Be proactive and make sure the representatives you have on file with the CRA are current. You can remove representatives that are not current by using My Account or My Business Account.
How to confirm a new representative using My Account or My Business Account
Follow these steps to confirm a new authorized representative or to accept changes to the authorization level of an existing representative using the new “Confirm my Representative” service.
- The first step is to make sure you have either My Account or My Business Account. If you haven’t used these services before, you will need to register for an account. You can check out the videos below for step-by-step instructions on how to register.
Keep in mind that registration may take several days. If you are planning to authorize a new representative, make sure to register for My Account or My Business Account in advance.
- Once registered, we recommend you enable email notifications to make sure you are notified when you receive a new authorization request. Email notifications let you know when you have mail to view in your account, and when important changes have been made to your account. Find out more about how to enable email notifications as an individual or a business.
- The next step involves your representative. They will need to sign in to Represent a Client to submit a new authorization request. When submitting this request, they will need to include a certification page signed by you or your delegated authority to complete the request.
- Once they have submitted a request, and if you have enabled email notifications, you will be notified by email that someone has requested access to your account. You must then sign in to My Account or My Business Account, where you can review your pending authorization request in the Authorized Representatives section of your account. You can then confirm or deny the request with the click of a button.
- You must confirm or deny the authorization request within ten business days, or the request will be cancelled and your representative will need to submit a new one.
Other options for individuals
If you are an individual, not a business, you can choose to authorize a representative without signing in to My Account and using the “Confirm my Representative” service. Instead, you will need to provide your representative with information from a notice of assessment that was issued to you at least six months earlier. When your representative submits their authorization request, they will need to provide this information. If you choose this option, you may be contacted by the CRA by phone to verify the request.
Other options for businesses
Delegated authorities (level 3 representatives) are also able to confirm or deny authorization requests in My Business Account on behalf of business owners.
If you are the owner or director of a business who is too busy or does not deal with routine tax matters, another officer of the company (tax officer, financial officer) can be designated as a delegated authority by the owner/director.
To do this, the business owner/director will still need to sign into My Business Account at least once in order to authorize the delegated authority. This delegate will have almost the same level of access as the owner/director to view and make changes to information in My Business Account, including confirming or denying new authorization requests for other representatives.
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.