There are many ways that you can make a payment to Canada Revenue Agency (CRA) and with tax season coming up shortly it is a good time to review the most commonly used payment options that are available including online banking, in personal at your financial institution, or by mail. Whichever method you choose, it is important to ensure your payment is made on time in order to avoid potential late payment penalties or interest charges.
Online Banking
Most financial institutions allow you to make payments to CRA in a similar way to paying a utility or phone bill. When adding a payee look for Canada Revenue Agency or CRA. Your financial institution may have payees available for “tax instalment”, “2016 tax owing”, or “past tax owed”. It is best to select the correct option, but even if you select the wrong option the allocation of the payment can be corrected once it is received by CRA. However, be sure to enter the correct account number (social insurance number if you are making a personal payment or business number if you are making a payment for your business) to avoid a lost or misapplied payment.
Call your financial institution if you have questions on how to make a payment to CRA through online banking.
In Person at your Financial Institution
You can make a payment in personal at any financial institution in Canada. However, in order to do so you will need a remittance voucher. Remittance vouchers for business payments are included with statements of account received from CRA and can also be requested from CRA by calling 1-800-959-5525. Remittance vouchers for personal payments are included with statements of account received from CRA and are also available from our office on request.
Cheques should be made payable to “Receiver General” and you should note the social insurance number or business number, as applicable, on the memo line of the cheque along with the year for which the payment is being made. This assists CRA in properly applying your payment. Some examples are noted below:
For a 2015 personal tax payment write, “123 456 789 – 2015 Balance Owing” on the memo line of the cheque, replacing 123 456 789 with your actual social insurance number.
For a 2016 personal tax instalment write, “123 456 789 – 2016 Instalment” on the memo line of the cheque, replacing 123 456 789 with your actual social insurance number.
For a 2015 GST payment write “12345 6789 RT0001 – 2015 Balance Owing” on the memo line of the cheque, replacing 12345 6789 with your actual business number.
By Mail
You may also mail your payment to CRA, using either a cheque or money order, to the following address:
Canada Revenue Agency
875 Heron Road
Ottawa ON K1A 1B1
Again, payments should be made payable to “Receiver General” and you should note the social insurance number or business number, as applicable, on the memo line of the cheque along with the year for which the payment is being made. This assists CRA in properly applying your payment. Some examples are noted above.
If you have a remittance voucher you should complete it and including it in the envelope with your cheque, but it is not required. If you do not include a remittance voucher with the payment be certain to make the correct notes on the memo line of the cheque or money order, otherwise CRA may not be able to properly process the payment.
Other Options
You can set up pre-authorized debit for payments to CRA either through online banking with your financial institution or through CRA using the My Account service (personal) or My Business Account service (business). CRA also accepts post-dated cheques.
Please contact our office if you have any questions about how to make your payment to CRA or if we can be of further assistance.