Payment arrangement

How to set one up

Start by working out what you can afford each month; the CRA provides a personal income and expense worksheet for this. Online, you sign in to My Account (individuals) or My Business Account (businesses), choose to proceed to pay, then schedule a series of payments by pre-authorized debit. You can also call the automated TeleArrangement line for personal income tax debt, or speak to an agent. If the CRA has already sent you a notice about the debt, call the number on that notice as soon as possible.

The online option covers many debts, including personal income tax, corporate income tax, payroll deductions and GST/HST. Other debts may need a phone call. Have your social insurance number or business number and a recent notice of assessment or similar document ready.

An illustrative example

A sole proprietor owes $6,000 after filing a return. Paying it at once would empty the account that covers rent and supplies. After reviewing income and expenses, the owner schedules a series of automatic withdrawals sized to the monthly budget and makes the first payment, which is what starts the arrangement. These numbers are illustrative; the CRA decides what is acceptable in each case.

What you still have to do

An arrangement is not a pause on your other obligations. You have to keep making payments on the agreed dates, file future returns on time and stay current on new amounts, and the CRA may review the arrangement periodically. If you cannot make a payment, call before you pay less than agreed; if you do not change the arrangement first, the CRA may proceed with legal action to collect.

The CRA may also use other federal payments you are owed, such as certain refunds or credits, against the debt even while you are paying. The CRA also charges interest on most unpaid balances, so ask what applies to yours.

Payroll and GST/HST debts are treated more strictly

For a business debt for payroll or GST/HST remittances, the CRA says it may start legal action right after you are notified of the debt, so contact the CRA promptly rather than waiting for a further letter.

What to discuss with your accountant

Ask whether the amount owing is correct before committing to pay it, whether a dispute or relief request is worth pursuing alongside the plan, and what you can safely commit to each month. Bring the notice, recent bank statements and your budget. Look at the related guides on catching up on taxes and CRA payment options.