At a Glance
The Canada Revenue Agency (CRA) allows you to pay your taxes directly to their platform using your banking app, over the counter in the bank, or by mailing a check.
From your online banking platform, you can seamlessly settle your taxes in the same way you pay for your utility or credit card bills. Simply sign-in to your online banking account and add whoever you're paying (payee), then select a department to pay your taxes.
Some of the listed tax departments include:
Federal - Corporation Tax Payments - TXINS (for federal income taxes)
Federal - GST/HST Return - GST 34 (GST34 for sales taxes)
Federal Payroll Deductions - Regular/Quarterly - EMPTX (PD7A for payroll taxes)
You can also pay taxes directly to the CRA by logging in to My Account through the CRA website and following the instructions on your screen. Alternatively, direct payments to the CRA can also be made from My Business Account. When using My Account, ensure that you have your 15-digit CRA program account number handy.
A simplified example
Mark Cuban runs a small law firm in Richmond. In 2019, his accountant arrived at a total tax bill of $25, 000 for his business. Cuban is aware that prompt payment of his taxes will save him time, penalties, and money if he follows the easiest payment route.
Option 1: He can pay using the online banking channel. He'll need to log-in to his banking platform and navigate over to the Pay Bill section, then Tax Filing Service, and select Transfer Funds (note: the process might vary between banks but it should be pretty standard for most banks).
Option 2: Cuban can also opt for direct payment to the CRA using My Account. After logging in, he'll simply select Pay Now under My Payment and follow the instructions to directly settle his taxes.
Other Options: He can also pay over the counter at his bank, or mail a check to the Receiver General at the CRA.
How does this impact you and your business?
You no longer need to endure long queues or dread complex procedures and tons of paperwork to pay your taxes. Neither do you have to pay someone to do it for you.
The CRA has simplified the process for anyone looking to settle their taxes conveniently and directly, with little to no paperwork involved. What's more? You save your business from late payment penalties and potential litigations result form late of failed payments.
So, whichever payment method you end up using, just make sure that it works best for you and business. The last thing you want to do is take a route that offers you anything by convenience and savings.
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