The CRA’s Electronic Payment Requirement for Taxpayers

The Canada Revenue Agency (CRA) has implemented a crucial change regarding payments exceeding $10,000. Starting January 1, 2024, all taxpayers making payments to the CRA over $10,000 must do so electronically. This includes GST/HST, withholding tax, payroll remittances, instalments, and income tax.

Penalties for Non-Compliance

While the CRA has not yet enforced this requirement, it will soon, and those who don’t adhere to the new provision will face a $100 per payment penalty.

In some cases, where paying electronically isn’t considered reasonable, there will be exceptions. However, the CRA has yet to determine what it considers reasonable.

How to Pay Electronically

Paying electronically to fulfill CRA obligations is simple. Taxpayers can utilize a variety of methods such as online banking, electronic funds transfer (EFT), or by using the CRA’s secure online payment portals.

Taxpayers can also make payments at a physical bank with a remittance voucher, and this will also be considered an electronic payment.

We Make Tax Compliance a Breeze

Staying compliant with CRA regulations is an essential step for a hassle-free tax season. To ensure you stay updated with changing guidelines and legislation, let the tax experts at DNTW Toronto LLP help.  As a full-service, mid-sized accounting firm, we have been providing a wide range of innovative tax solutions to clients in Toronto and across Ontario for more than two decades. For more information about how DNTW Toronto LLP can help you and your business, reach out to us online or by telephone at 416.924.4900.