Frequently Asked Questions
How to pay the taxes I owe the government. +
You can make your payment in one of the following ways:
My Payment: My Payment is a payment option that allows individuals and businesses to make payments online, using Canada Revenue Agency's (CRA)Web site, from an account at a participating Canadian financial institution.
Electronically: You may be able to pay electronically using your financial institution's Internet or telephone banking services. Most financial institutions allow you to schedule future-dated payments. For more information, contact your financial institution.
At your financial institution: You can make your payment free of charge at your financial institution in Canada. To do so, you have to use the remittance form in your personalized tax package (if you received one) or Form T7DR(A), Efile Remittance Form, which you can get from CRA. You cannot use a photocopy of a remittance form to make a payment at your financial institution. Our forms are printed with magnetic ink characters to allow for processing through the banking system. Photocopies do not contain magnetic ink and are refused by financial institutions.
By cheque or money order: You can attach to the front of your paper return a cheque or money order made out to the Receiver General. Enter your payment amount on line 486. To help CRA process your payment correctly, write your social insurance number on the back of your cheque or money order. You can send CRA a cheque or money order with the remittance form in your personalized tax package (if you received one) or with Form T7DR(A), which you can get from CRA. Mail the form and your cheque or money order to: Canada Revenue Agency, 875 Heron Road, Ottawa ON K1A 1B1.
Notes: Do not mail CRA cash or include it with your return. They accept post-dated cheques. If you make a payment with a cheque that your financial institution does not honour (including a cheque on which you put a "stop-payment"), CRA will charge you a fee.
Paying in foreign funds: You can make your payments in foreign funds. However, the exchange rate you receive for converting the payment to Canadian dollars is determined by the financial institution.
Wire transfers: This payment method is only available to non-residents who do not hold a Canadian bank account.
Why do I owe taxes for multiple jobs? +
When we calculate our tax returns at the end of the tax year, the best situation is when the amount of tax deducted by the payroll administrator is the same as the amount of tax we owe. This is usually not the case. If there was too much deducted through out the year, then we receive a refund. If not enough was deducted, then we owe the balance by 30 April the following year. One of the most common reasons you owe tax is when you have multiple jobs.
InCanada, payroll is calculated as per government calculations. Each payroll administrator uses a stand alone software program (i.e. on their own computer) to make the calculations. This means that each job you have does not know about the other jobs you have in the same year.
For example, if you had a one day a week job that you only earnt $5000 for the year, then the taxes deducted would be minimal, usually about $100.00. If this was the only job you had all year, then this is a legitimate tax deduction. But the problem arises when you have another job that you made $15, 000.00 for the year. They would deduct the correct amount of income tax for that income. When you calculate your taxes owed for the year, we add the two incomes together and your gross income is now in another tax bracket, and there was not enough tax deducted through out the year.
I can't pay my taxes, what do I do? +
You have several options that are detailed in the link below. The CRA is very happy when you contact them regarding your situation. It is when they have to follow up with you to collect that they can become difficult to deal with.