Mandatory Electronic Payments to CRA

Effective January 1, 2024 the Canada Revenue Agency implemented a mandatory requirement that any payments over $10,000 must now be made electronically.  This includes any payment made related to balances due for personal, corporate and Trust income tax, instalments, HST remittances, payroll remittances and any other payments made to the Receiver General of Canada.

Electronic payments can be made through your online banking in most cases or in person at your  bank with a remittance voucher issued by the CRA.  Alternatively, payments can also be made by debit card through the Canada Revenue Agency’s “My Payment” service available here: https://www.canada.ca/en/revenue-agency/services/e-services/payment-save-time-pay-online.html.

It is important to note that the CRA considers your payment made on the date that they receive it, not on the day you submit it through your online banking or the above My Payment service.  When a payment due date falls on a Saturday, Sunday or public holiday recognized by the CRA your payment is considered on time if it is received, or is post-marked, on or before the next business day.

Although the Canada Revenue Agency has indicated there will be a grace period, payments which are not submitted electronically that meet the above threshold may be subject to penalty or non-processing.  Exceptions may also be granted in circumstances where it is not reasonable to make an electronic payment.

If you are unsure whether these new rules affect you, please do not hesitate to contact us.