CRA Tax Payment Plan

CRA TAX PAYMENT PLAN EDMONTON

Your business cannot pay its tax debt in full now

If you are an employer, the amounts that you deduct and withhold from the wages of your employees are considered deemed trust amounts. Similarly, if you operate a business as a sole proprietor, partnership, or corporation, the GST/HST amounts that you collect from your customers are also considered 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 separate and apart. Deemed trust amounts must be paid in full when owed.

The CRA will work with businesses to help them meet their 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 over time 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. As a business, you may also have to fully disclose your financial records.

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

  • Maintain a regular payment plan
  • Always file all returns on time
  • Stay up to date with tax obligations

Taxpayer relief provisions for businesses

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:

  • Extraordinary circumstances;
  • Actions of the CRA;
  • Inability to pay or financial hardship;
  • Other circumstances