Make a Payment to the CRA — Montreal CPA Firm Near You: Complete Guide to CRA Payments, Deadlines, Methods, and Smart Compliance

Paying the Canada Revenue Agency (CRA) should be simple—but for individuals and businesses, the wide range of payment methods, banking rules, posting timelines, and remittance requirements can become surprisingly complicated. Missing a payment deadline results in penalties, daily compound interest, frozen refunds, and in some cases, aggressive collection action. Understanding the correct way to pay, when the CRA considers a payment “received,” and how to avoid the most common mistakes is essential for smooth tax compliance.

This in-depth, 4-page Mackisen CPA guide explains every CRA payment option, including online banking, My Payment, pre-authorized debit, ATM payments, teller payments, Canada Post QR payments, wire transfers from abroad, and third-party providers. You’ll learn which taxes you can pay through each method, how long each takes to post, what to avoid during postal interruptions, and how to choose the best method for your situation.

This article is written in a high-authority accounting and tax blogger style, optimized for strong SEO and high conversion, and designed to help Canadians understand their responsibilities while guiding them toward professional support from Mackisen CPA Montreal.

Legal and Regulatory Framework

Under the Income Tax Act, taxpayers must pay taxes owing by the prescribed deadline, regardless of when their return is filed. Late payments trigger:

• Daily compounded interest

• Late-filing penalties when combined with late returns

• Offset of benefits or refunds

• Potential wage garnishment or bank freezes in extreme cases

The CRA accepts payment through a variety of approved channels, but each has its own rules regarding:

• Processing time

• Payment date

• Supported tax types (personal, corporate, payroll, GST/HST, instalments)

• Voucher requirements

• Banking limitations

• Service fees (for third-party transactions)

• Postal delays and exceptions

Taxpayers are responsible for ensuring payment arrives on time, regardless of bank delays, holidays, or postal strikes.

CRA rules also require businesses and individuals to keep proof of payment, such as:

• Bank confirmations

• Stamped teller receipts

• CRA confirmation numbers

• Remittance vouchers

• Email confirmations

These become critical in case of disputes or CRA collections.

Key CRA Considerations and Court Decisions

Several CRA rulings and court cases clarify when a payment is considered received:

1. Bank transaction date is not always equal to CRA payment date.
   CRA considers the payment “made” on the date it is received by CRA or stamped by a teller—not always the date you initiated the transaction.

2. Postal delays do not excuse late payments.
   Courts consistently uphold penalties even when mail is slow, lost, or delayed. Taxpayers must use faster methods or deliver early during postal disruptions.

3. Third-party errors are the taxpayer’s responsibility.
   If a third-party provider or bank delays transmitting your funds, CRA still applies penalties.

4. CRA interest cannot be waived simply because a payment was “in transit.”
   Unless the taxpayer qualifies for taxpayer relief due to extraordinary circumstances, interest stands.

5. Electronic records must be retained as proof of payment; CRA can reject claims without documentation.

These principles underline why choosing the right payment method and timing is essential.

Why CRA Payment Issues Are Commonly Targeted

The CRA focuses heavily on payment compliance because:

• Millions of Canadians make last-minute payments

• Instalments are frequently missed or short-paid

• Postal delays cause misapplied or late payments

• Small businesses often rely on outdated remittance methods

• Many individuals are unaware cash payments at Canada Post require QR codes

• Corporate and payroll payments are often misdirected

Collections pressure increases each year. CRA uses automated systems to assess interest immediately and issue collection notices if payments are late or misallocated.

For businesses—the stakes are higher. Late GST/QST, payroll remittances, and corporate tax instalments result in steep penalties. Proper payment methods protect cash flow and prevent costly enforcement.

Mackisen Strategy

As Montreal’s leading CPA firm for tax compliance, Mackisen guides clients on:

• Choosing the safest and fastest CRA payment method

• Setting up recurring instalments to avoid penalties

• Structuring payment plans and negotiating with CRA Collections

• Using MyAccount/MyBusinessAccount tools for verified payments

• Ensuring non-resident or emigrant clients pay correctly from abroad

• Correcting misapplied or lost payments

• Preventing over-remittances and reconciling CRA accounts

• Managing payroll and GST/HST remittances for businesses

• Providing proof-of-payment packages for CRA audits

Our strategic goal is simple: help clients pay the CRA smoothly, avoid interest and penalties, and reduce administrative stress.

Real Client Experience

A Quebec business owner mailed a cheque during a Canada Post disruption. CRA received it late and applied thousands in penalties and interest. Mackisen intervened, provided documented timelines, and successfully obtained taxpayer relief to cancel the penalties.

A taxpayer paid via a third-party credit card provider that delayed transmitting funds. CRA charged penalties. We helped dispute the effective payment date and structured future payments using PAD withdrawals to avoid risk.

A corporation with GST/QST arrears used online banking but selected the wrong CRA payee (personal instead of business). CRA applied the payment incorrectly and issued a collections notice. Mackisen rerouted the payment and prevented enforcement action.

A non-resident worker attempted to wire funds from a foreign bank without a remittance voucher, causing misallocation. We coordinated international wire instructions and ensured proper coding.

These cases illustrate why expert guidance prevents costly mistakes.

Understanding Each CRA Payment Method (With Processing Times and Best Uses)

1. Online Banking (Bank/Credit Union)

• Add CRA as a payee

• Pay personal tax, corporate tax, GST/HST, payroll, instalments

• Direct withdrawal from bank account

Processing timeline:

• Considered paid: same or next business day

• CRA posting: within 3 business days

Best for:

• Individuals and businesses with Canadian bank accounts

• Instalment payments

• Corporate remittances

• Fast, secure payments

Avoid for:

• Non-residents without Canadian accounts

2. CRA My Payment (Debit Only)

• Pay online using a debit card

• No credit cards accepted

• Works through My Account or My Business Account

Processing timeline:

• Considered paid: same day unless after 10 pm or on weekends/holidays

• Posting: up to 3 business days

Best for:

• Quick individual payments

• Last-minute payments before deadlines

3. Pre-Authorized Debit (PAD)

• Set up through CRA My Account, My Business Account, or Represent a Client

• Schedule one or multiple future payments

• Must set up at least 5 business days in advance

Processing timeline:

• Considered paid: date withdrawn

• Posting: up to 2 business days

Best for:

• Monthly instalments (GST/HST, income tax, payroll)

• Avoiding missed deadlines

4. In-Person Teller Service (Bank/Credit Union)

• Requires CRA remittance voucher

• Pay using your bank account

Processing timeline:

• Considered paid: date stamped by teller

• Posting: 2–3 business days

Best for:

• High-value payments

• Business remittances needing physical validation

5. ATM Payments

• Must add CRA as a payee

• Direct debit from account

Processing timeline:

• Considered paid: 1–2 business days

• Posting: 3 business days

Best for:

• Individuals without online banking

6. Canada Post Retail Locations

• Requires customized CRA QR code

• Pay with debit or cash

• Service fees apply

Processing timeline:

• Considered paid: same day

• Posting: up to 2 business days

Best for:

• Individuals paying with cash

• Communities with limited banking access

7. Third-Party Providers

Methods include:

• Credit card payments

• PayPal

• Interac e-Transfer via external providers

Service fees apply.

Processing timeline:

• Considered paid: varies

• Posting: usually within 2–3 business days

Best for:

• Credit card users wanting points

• International taxpayers

• Taxpayers needing flexible payment methods

Risk:

• CRA does not endorse providers

• Delays by providers still result in CRA penalties

8. Mail Delivery (Cheques)

• Must be in Canadian funds

• Delays common during Canada Post strikes

• Cheques can be lost or delayed

Processing timeline:

• Considered paid: date received by CRA

• Posting: up to 10 business days

Best for:

• None during postal disruptions

• Businesses that need cheque records

9. Wire Transfer from Outside Canada

• Requires specific CRA wire instructions

• Depends on foreign bank capabilities

Processing timeline:

• Considered paid: same or next business day

• Posting: approx. 3 business days

Best for:

• Non-residents

• Emigrants

• International corporations paying Canadian tax

Common Questions

Which CRA payment method is safest?
Online banking or PAD. They provide clear timestamps and fast posting.

Can I pay by credit card?
Yes, but only through third-party providers, with service fees.

Do I need a remittance voucher?
Required for teller payments, Canada Post, and some wire transfers.

What if my payment is misapplied?
Mackisen can contact CRA to correct the payment allocation.

Can CRA refund overpayments?
Yes, but business remittance overpayments often require manual adjustment.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps Canadians and businesses make CRA payments correctly, avoid penalties, and stay compliant. Whether you need help setting up instalments, handling payroll and GST/QST remittances, managing non-resident payments, or resolving a collections dispute, our team ensures your payments are accurate, efficient, and stress-free.

If you want expert guidance on paying the CRA the right way, Mackisen can secure your compliance, protect your cash flow, and simplify your entire payment process.