CRA Requirement to Pay Notices: What They Are and How to Respond

A Requirement to Pay (RTP) Notice is one of the most aggressive enforcement tools CRA uses. It allows CRA to legally seize money owed to you — not by you — without a court order. CRA simply instructs your bank, employer, tenants, customers, or payment platforms (such as PayPal, Stripe, Uber, SkipTheDishes, Amazon, Shopify) to redirect funds to CRA instead of you. If you receive notice of an RTP or learn that CRA has issued one against you, immediate action is essential. This guide explains what a Requirement to Pay is, how it works, who CRA can target, and how to stop or reverse it.

What Is a CRA Requirement to Pay (RTP)?

An RTP is a legal order issued by CRA requiring a third party to send your money to CRA. It can be issued for:
personal income tax
corporate tax
GST/HST
payroll source deductions
UHT (Underused Housing Tax)
director’s liability
RTPs do not require a court judgment; CRA has unilateral authority.

Who CRA Can Send a Requirement to Pay To

CRA can issue an RTP to:
your bank (freezing your account)
your employer (wage garnishment)
your tenants (rental income redirected to CRA)
your customers (contract payments seized)
your merchant processors (Stripe, PayPal)
your pension provider
your investment institution
your business clients (for receivables)
This cuts off your cash flow immediately until the tax debt is addressed.

When CRA Issues a Requirement to Pay

CRA issues RTPs when:
tax returns have not been filed
you ignored CRA letters
you defaulted on payment arrangements
you owe GST/HST or payroll remittances
CRA believes you are avoiding repayment
you failed to respond to collections
RTPs are usually a “last step” before legal action, but CRA can issue them without warning.

Types of RTP Actions

1. Bank Freeze RTP

Bank freezes funds and transfers amounts to CRA.

2. Wage Garnishment RTP

Employer must redirect part of your pay.

3. Accounts Receivable RTP

Clients are ordered to pay CRA instead of your business.

4. Tenant RTP

Your tenants send rent directly to CRA.

5. Merchant Processor RTP

Stripe, PayPal, Uber, Skip, or Amazon payouts seized.

What CRA Takes Under an RTP

CRA can take:
all funds in your bank account
wages up to 50% (or more depending on province)
100% of contractor or self-employment income
100% of business receivables
rental payments
pension income
CPP/OAS (in certain circumstances)
CRA stops only when the debt is paid or an agreement is reached.

Consequences of Ignoring an RTP

lost access to bank accounts
inability to pay rent, suppliers, or staff
terminated contracts
business failure
creditor pressure
eviction risk
CRA continues to seize funds until you intervene.

Immediate Steps to Take After Receiving an RTP

Step 1: Do NOT contact CRA Collections alone

Collections officers are trained to extract payment, not negotiate.

Step 2: Contact a CPA immediately

A CPA protects your rights and negotiates strategically.

Step 3: File any missing returns

CRA will not lift an RTP until compliance is restored.

Step 4: Determine the exact balance owing

Income tax vs GST/HST vs payroll vs corporate tax — each has different rules.

Step 5: Request a freeze release or reduction

A CPA can request CRA release:
fixed living expenses
essential business payments
rental costs
groceries
medical payments
CRA requires detailed financial documentation.

Step 6: Negotiate a Payment Arrangement

Once an arrangement is in place, CRA often lifts RTPs immediately.

How to Stop a Wage Garnishment RTP

CRA stops garnishment when:
returns are filed
payment plan is accepted
hardship is proven
Appeal is filed (for income tax RTPs)
A CPA negotiates stronger terms than taxpayers can alone.

How to Stop an RTP Issued to Banks or Merchant Processors

CRA lifts freezes when:
the debt is addressed
a structured repayment plan is approved
a CPA demonstrates hardship
the seized amount exceeds the fair amount
Freezes can be lifted in 24–72 hours with proper intervention.

When Filing a Notice of Objection Helps

A Notice of Objection pauses income-tax collections, meaning CRA cannot:
freeze your bank
garnish wages
seize new funds
Important: this does NOT stop enforcement for:
GST/HST
payroll remittances
UHT
These require negotiation, not Objections.

When Taxpayer Relief Applies

Taxpayer Relief can reduce interest and penalties when:
serious illness
financial hardship
natural disasters
death in the family
CRA delays cause additional interest
Taxpayer Relief does not stop an RTP — but it reduces debt after compliance is restored.

RTP Risks for Business Owners and Directors

Directors are personally liable for:
GST/HST
source deductions
Trust accounts make RTPs more aggressive.
You must fix compliance immediately to protect personal finances.

How to Avoid Future RTPs

file returns on time
remit GST/HST and payroll correctly
respond to CRA mail immediately
negotiate payment plans early
avoid mixing business and personal accounts
do not ignore audit requests
CRA uses risk scoring — repeated non-compliance triggers enforcement faster.

Mackisen Strategy

At Mackisen CPA Montreal, we immediately intervene with CRA Collections to stop or lift RTPs, negotiate structured payment arrangements, file missing returns, reconstruct financial records, and challenge incorrect assessments. We protect your income and restore financial control quickly and strategically.

Real Client Experience

A Montreal consultant had a bank freeze lifted within 48 hours after negotiating a payment plan. A restaurant owner with GST arrears avoided business failure after stopping an RTP issued to merchant processors. A landlord reversed a tenant RTP by proving CRA overstated rental income. A tradesman ended wage garnishment by filing missing returns and securing a new arrangement.

Common Questions

Can CRA take all my bank money? Yes. Can CRA garnish self-employed income? Yes — 100%. Can I stop an RTP? Yes — with fast action. Does Objection stop GST RTPs? No. Should I contact CRA myself? Not advisable.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps taxpayers stop CRA Requirement to Pay Notices, defend against aggressive collections, and regain financial stability through expert negotiation and compliance strategies.