Posts Tagged ‘payment’

Personal and Corporate Tax Instalments

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An instalment payment is a partial payment of the total amount of tax payable for the year.  Instalments are not paid in advance; they are paid during the calendar year in which you are earning the taxable income.

 Personal Tax Instalments

Not every person is subject to paying by instalments. If you have net tax owing that is more than $3,000 in your upcoming tax return, and in either of your previous two tax returns, then you have to pay your income tax by instalments.

These quarterly payments are due March 15, June 15, September 15, and December 15 prior to the income tax deadline date of April 30.

Corporate Tax Instalments

Generally, corporations have to pay their taxes in instalments. The Income Tax Act requires corporations to make instalment payments so that they are treated the same as taxpayers who have tax deducted from their income at source. In a similar manner as an individual, if the entity’s net tax owing is more than $3,000 in its upcoming tax return, and in either of its previous two tax returns, then it has to pay its income tax by instalments.

Corporations however, can pay instalments either monthly or quarterly. The due dates are dependent on the start and end of the fiscal year.

As an example,

If start of the tax year is January 1:

  • first monthly payment is due by January 32 and so on
  • first quarterly payment is due by March 32 and so on

If start of the tax year is April 1:

  • first monthly payment is April 30, and so on
  • first quarterly payment is June 30, and so on

CRA Website – Roadmap for Electronic Payments

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Whether it is for personal taxes or business taxes, parting with your hard earned money is painful enough without the process being more complicated than it needs to be. Thankfully, CRA has made the process extremely efficient by setting up electronic payment options on their website.

Are you new or perhaps leery of using this feature? Or perhaps you are one of the many taxpayers that have attempted to make a payment online, but after much clicking and scrolling have gotten lost down the CRA navigational road. Whether you are new to this payment feature or presently frustrated with your less than stellar attempts to use it, this blog is for you!

SY&C has traversed this trail many times and has found a painless way to get to where you want to go. Simply follow our step-by-step instructions below and make your next electronic payment from the CRA website – without getting lost or frustrated.

Make a Payment

CRA picture

  • From the search results click on My Payment – save time, pay online

My Payment

  • From the next screen select Start My Payment

My Payment 2

  • The next screen allows you to select the type of payment you would like to make either for individuals, businesses or non-residents.
  • From this point, simply follow the prompts respective to the type of payment you will be making.
  • You can pay your taxes in many different payment methods outlined on the website and through many different financial institutions. Please see the links below which outline all the ways and means you can pay.

CRA: http://www.cra-arc.gc.ca/mkpymnt-eng.html

CPA Canada: https://www.cpacanada.ca/en/connecting-and-news/cpa-magazine/articles/2015/october/easy-ways-to-pay-cra

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