Now that you are ready to pay your income tax to CRA (that’s if you owe a tax debt), it is worthy to know the mode of payments available to you.
There are many tax payment options the CRA recognizes and accepts. Each have their different processing time. This article will give you more insight on them, and other payment methods that are not accepted. You’ll want to sit with me on this one.
The most popular method among all is the electronic means. These electronic payment options are easy, fast and do not require your physical presence to process. In other words, you can sit at the comfort of your home or office and file your income taxes.
Let’s explore the various payment modes in details;
1. ONLINE BANKING
This falls under the electronic category and allows you to pay through your financial institution’s online banking application or website. However, you are responsible for any fees that may be charged by your financial institution. Most financial institutions also give you an option to set up a payment to be made on a future date. Payments are usually received by the CRA on same day or next business day (varies based on your financial institution).
2. CRA MY PAYMENT
Itis an electronic service that allows you make payments directly to the Canada Revenue Agency (CRA) using your bank access cards like Interac Debit, Visa Debit, or Debit Mastercard. Be aware that you cannot use credit cards with this payment option. Payments are usually processed by the CRA within 1 to 3 business days.
3. WIRE TRANSFER
If you don’t consider the above two options suitable enough, then you can try WIRE TRANSFER.
This method is recommended for non-residents who do not have a Canadian bank account but want to make their payments to the CRA from their home country. It is important to note that all wire transfers must be in Canadian dollars and your financial institution may charge you a fee for this payment. And please, make sure your financial institution does not deduct the wire transfer fee from the total payment amount due, because this will result in an underpayment. It takes about 3 business days for wire transfer to be processed by the CRA.
4. PRE-AUTHORIZED DEBIT (PAD)
With this secure and online self-service payment option, you set the payment amount and authorize the CRA to withdraw it from your Canadian chequing account on the date of your choice. Please note that your selected payment date must be at least five business days prior to your payment due date.
5. IN-PERSON
Not comfortable with electronic means of payment? You can also make a payment to the CRA by taking a physical visit to your Canadian bank, financial institution or credit union. It is wise to bring a personalized remittance voucher, so that the payment can be properly applied to your tax account by the CRA. But if you do not have a remittance voucher, then you can order personalized remittance vouchers. See Order remittance vouchers or payment forms.
There are two methods used to initiate payment in-person;
* Canada Post Location (Debit Card or Cash).
The service fee is charged based on the amount of the payment. Paying via this method requires a quick response (QR) code (service fees apply).
* Financial Institution (Cheque).
Using a cheque from your Canadian bank account, is another accepted option to make a payment to the Canada Revenue Agency. To do this, make the cheque payable to the Receiver General for Canada. Then, mail it with your remittance voucher to the address on the back of your voucher. Payment is considered received on the date CRA receives the cheque, not the postmark date.
6. PAY BY MAIL
Finally, you can mail your remittance voucher with your Canadian cheque or money order payment. Tax is considered paid once mail has been received by CRA. However, you cannot send cryptocurrency (such as Bitcoin), gift card or cash via mail to the CRA as means of payment, as they are unacceptable.
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