Starting January 1, 2024, taxpayers will be required to remit tax payments over $10,000 to the Canada Revenue Agency electronically or be assessed a penalty of $100 per payment.
There are several electronic options available. Most Canadian banks provide a full range of electronic payment options to CRA, including personal tax, corporate tax, payroll, GST/HST, non-resident withholding tax, etc. Payments made physically at a bank with a remittance voucher are considered to be made electronically. More information about options to make payments to CRA can be found on CRA’s website at: https://www.canada.ca/en/revenue-agency/services/payments-cra.html
Exceptions to the penalty may be made when it is not “reasonable” to make payments electronically. For example, electronic tax payments may not be feasible due to power outages or unreliable internet in rural areas. The CRA is currently developing policies about what is “reasonable” and details will be shared publicly when the policies are established. CRA has also indicated a grace period may be allowed before penalties commence in order to give taxpayers time to familiarize themselves with electronic payment options.
We encourage all clients to remit payments to CRA electronically even if the amount is less than $10,000. Electronic payments significantly reduce the risk of lost or misapplied payments and provide reliable third party evidence of payment dates. It is also normally far easier and faster for CRA to trace a lost or misapplied electronic payment than a cheque mailed to CRA.
Contact your Adams + Miles engagement partner if you have any questions about these new electronic payment rules.
Glen MacMillan, Tax Partner
The above content is not complete, does not address all scenarios and is intended for general information
purposes only. This content should not be used or relied on as a substitute for consultation with your
Adams + Miles professional advisor