CRA Tax Payment Plan


Your business cannot pay its total tax debt. The amounts you deduct and withhold from your employee’s wages are considered trust amounts if you are an employer. Similarly, if you operate a business as a sole proprietor, partnership, or corporation, the GST/HST amounts you collect from your customers are also deemed trust amounts.

If your business has a tax debt, it may include corporate income tax debt and deemed trust amounts.

You cannot use deemed trust amounts as cash flow. Even if you keep these amounts with your personal or business funds, the amounts are considered to be held separately and apart. Deemed trust amounts must be paid in full when owed.

The CRA will help businesses meet payment obligations, such as corporate income tax debt or deemed trust amounts. In extraordinary situations where your business cannot pay in full, you may qualify for a payment arrangement or taxpayer relief.

Payment Arrangements

A payment arrangement is an agreement that your business makes with the CRA. It allows your business to make smaller payments until you have paid your entire debt, including applicable interest.

Before your business makes a payment arrangement, you may need to show that you have tried to pay your debt in full by borrowing money or reducing expenses. You may also have to disclose your financial records as a business.

Once you have made a payment arrangement your business must also:


In some circumstances, you may be able to ask for relief from penalties and interest charges and reduce the overall amount you or your business owes. For more information and to see if your situation qualifies, see Taxpayer Relief Provisions.

The Minister may grant relief from penalty or interest when the following types of situations prevent a taxpayer from meeting their tax obligations: