Payments to the CRA — Montreal CPA Firm Near You: Deadlines, Payment Options, Instalments, and Debt Solutions

Paying amounts owing to the Canada Revenue Agency (CRA) is one of the most important obligations for individuals and businesses. Whether you owe a balance on your 2024 personal tax return, need to pay GST/QST/HST remittances, must make instalments, or are dealing with a tax debt from previous years, knowing how and when to make payments can prevent penalties, reduce interest, and protect you from collections. Many Canadians struggle with CRA payment requirements, especially when facing financial difficulty, cash flow issues, or unexpected reassessments. This detailed guide explains all payment methods, deadlines, relief options, instalment rules, consequences of not paying, and how to navigate CRA programs designed for individuals who cannot pay on time.

For the 2024 tax year, the deadline to pay your personal taxes is April 30, 2025. Missing this payment triggers daily compounded interest and may impact refunds, credits, or future CRA interactions. Understanding CRA payment expectations is essential for preventing long-term financial problems. Whether you pay online, through your bank, at Canada Post, or by mail, the payment must reach the CRA by the deadline. This guide provides clarity on what to do when payments are delayed, misapplied, or not feasible due to financial hardship.

Legal and Regulatory Framework

CRA collections and payment requirements are governed by the Income Tax Act, the Excise Tax Act, and various provincial counterparts such as the Québec Tax Administration Act. These laws give the CRA the authority to impose interest, apply penalties, and initiate collection actions when amounts owing are not paid. Interest begins immediately after the due date and compounds daily. Even if a taxpayer files their return on time, failure to pay the balance by the deadline will result in interest charges.

For individuals and businesses required to make instalments, the law mandates remitting payments throughout the year when taxes are not deducted at source. Instalment payments apply to self-employed individuals, those with investment or rental income, incorporated businesses, and anyone whose prior-year tax balance exceeds certain thresholds. Missing instalments creates interest charges and can lead to instalment penalties when multiple payments are late.

The CRA’s ability to collect is broad. The agency may withhold credits or refunds, place liens on property, garnish wages or bank accounts, contact employers, and recover amounts through federal or provincial benefit offsets. When taxpayers face financial hardship, however, CRA legislation provides relief mechanisms such as payment arrangements, taxpayer relief requests, and reductions of penalties or interest in exceptional cases. Knowing these rules helps taxpayers manage obligations strategically and avoid unnecessary consequences.

Key Court Decisions

Canadian courts have repeatedly supported the CRA’s authority to collect outstanding debts. In cases such as Canada v. Simard-Beaudry Inc. and Gaucher v. Canada, the courts confirmed the agency’s right to enforce payment through garnishments, liens, and seizure of funds. These decisions affirm that the CRA is not required to seek court approval before initiating many collection actions, making timely payment critical.

Courts have also clarified that taxpayers remain responsible for knowing their payment deadlines. In various rulings, judges have emphasized that misunderstanding deadlines, relying on outdated information, or misinterpreting advice from tax preparers does not exempt individuals from penalties or interest. The courts have consistently maintained that the burden lies on the taxpayer to comply with statutory obligations.

These decisions underline the importance of being proactive. If you cannot pay, you must contact the CRA or work through a CPA firm to negotiate payment arrangements or relief. Waiting for CRA to escalate the file reduces your options and increases the likelihood of enforcement.

Why CRA Targets This Issue

The CRA places significant emphasis on payments because unpaid taxes directly impact federal revenue and program funding. Late or missed payments also create administrative costs and increase the risk of future non-compliance. The CRA closely monitors compliance patterns, including individuals who repeatedly owe balances, businesses that remit late, or taxpayers whose instalment requirements are met inconsistently.

Common CRA triggers include taxpayers who:
• consistently owe at year-end
• fail to make instalments when required
• miss GST/HST/QST or payroll remittances
• receive large reassessments
• stop responding to CRA correspondence
• ignore collection letters
• attempt to dispute debt without proper documentation

The CRA’s automated systems track payment histories, and accounts with risk indicators may be escalated to the Collections department. Once a file reaches collections, options become more limited, and taxpayers often face aggressive enforcement. Understanding deadlines, confirming payments, and addressing debt early helps avoid costly escalation.

Mackisen Strategy

Mackisen guides clients through every step of the CRA payment process, from confirming amounts owing to structuring payment plans and negotiating with collections. We first review your CRA account, notices of assessment, instalment reminders, benefit offsets, and prior-year filings to confirm whether the amount owing is accurate. Many taxpayers mistakenly believe they owe more than they do, often due to reassessments, missing slips, or errors. Our review ensures you do not pay amounts that are incorrect or inflated.

When a balance is confirmed, we help clients select the most reliable payment method, whether online banking, CRA My Payment, the CRA mobile app, pre-authorized debit, cheque, or payment at participating Canada Post outlets. For individuals unable to pay in full, we calculate an affordable monthly amount and negotiate directly with CRA to set up a formal payment arrangement. This protects you from garnishments, liens, or further collection actions.

In cases of extreme financial hardship, illness, job loss, or extraordinary circumstances, we help prepare taxpayer relief requests. These may result in the cancellation of interest or penalties, depending on CRA review. For individuals who have misapplied payments or missing credits, we verify the transactions, confirm processing, and resolve discrepancies. When necessary, we contact the CRA to correct payment allocation errors or obtain confirmation.

For businesses, Mackisen provides specialized support for GST/QST/HST remittances, payroll source deductions, and corporate instalments. These payments are heavily monitored by CRA, and late submissions can lead to aggressive enforcement. Our role is to ensure compliance, protect cash flow, and prevent costly penalties.

Real Client Experience

Mackisen regularly assists individuals and businesses who struggle to manage CRA payments. One client received a sudden reassessment resulting in a significant balance owing. Unable to pay at once and concerned about enforcement, we reviewed the assessment for accuracy, corrected several calculation errors, and reduced the amount owing by thousands. We then negotiated a manageable payment arrangement, avoiding garnishment.

Another client failed to make required instalments as a self-employed individual and faced instalment penalties. We analyzed their income, recalculated future obligations, and helped set up a pre-authorized instalment plan, preventing further penalties. In cases where payments were misapplied, such as cheques sent without proper references or payments processed incorrectly, we resolved the issue through CRA payment tracing and provided written confirmation for the client’s records.

During the Canada Post strike mentioned on the CRA site, some clients’ mailed payments were delayed. We assisted them in switching to secure online payment options to prevent interest and penalties. For clients experiencing hardship due to medical issues or job loss, we successfully prepared taxpayer relief submissions demonstrating extraordinary circumstances, leading to interest reductions or penalty cancellations.

Common Questions

What is the payment deadline for 2024 taxes?
The deadline is April 30, 2025.

How do I pay the CRA?
You can pay online, via your bank, through CRA My Payment, at Canada Post, by cheque, or through pre-authorized debit.

What if my payment isn’t showing in my CRA account?
You can confirm payments through CRA My Account, your bank records, or with assistance from a CPA firm.

What if I cannot pay on time?
You can call CRA to set up a payment arrangement or work with a CPA to negotiate terms.

What happens if I don’t pay?
CRA may apply penalties, charge interest, withhold refunds, garnish wages, or place liens on property.

Do I need to make instalments?
You may, depending on your prior-year taxes. Instalments are required when taxes are not withheld at source.

Can I get debt relief?
CRA may grant relief under the Taxpayer Relief Program if you face extraordinary circumstances.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses stay compliant while recovering the taxes they’re entitled to. Whether you’re filing your first GST/QST return or optimizing multi-year refunds, our expert team ensures precision, transparency, and protection from audit risk.