Does your business owe taxes to the Canada Revenue Agency (CRA)? Ignoring your tax debt isn’t the best strategy. Avoiding payment could result in financial and legal consequences for you and your business. The CRA charges interest at the prescribed rate compounded daily on debts owing until they are paid in full.
Pay your debt online
The quickest and easiest way for your business to pay its debt to the CRA is to pay online.
Find out your options if your business can’t pay in full now
Can’t pay in full now? The CRA can work with you to set up a payment arrangement. The sooner you take action, the less interest you’ll have to pay.
To help the CRA determine your ability to pay, you may have to give details of your financial situation and proof of your income, expenses, assets, and liabilities. You can do this by telephone or by filling out a financial questionnaire sent to you by a collections officer.
Keep on track
Staying up to date with your tax obligations is an important part of managing your business. If your business is struggling to make its payments, see the CRA’s collections webpage and the video “Keeping Your Business on Track” for more information.
The webpage and video tell you where to go to pay your debt to the CRA and how to set up a payment arrangement if you can’t pay all at once. It also lets you know what happens if your business doesn’t pay its debt in full and on time.
Beware of scams
The CRA doesn’t use email or make you fill out an electronic template to get information. Be wary of telephone or email scams.
If you would like more information on the different options for your business when it comes to tax deb, contact GB Pilley & Associates Ltd., Chartered Professional Accountants at 604 926 3522.