Mar 10, 2025
Are You Still Mailing Cheques to the CRA? Here’s a Faster, Easier Way to Pay
Running a business is already complicated—why make the payment of tax harder than it needs to be? If you’re still mailing post-dated cheques or standing in line at a financial institution to pay your corporate income taxes, you’re wasting valuable time.
Electronic payments aren’t just more convenient—they help business owners avoid penalties for taxpayers, track remittance details instantly, and stay compliant with the Canada Revenue Agency (CRA) with minimal effort.
In this step-by-step guide, we’ll walk you through exactly how to pay your corporate income tax return online in Canada, ensuring you never miss a balance-due day again.
Why Paying Online is the Best Option
Making your corporate tax instalments online comes with several benefits:
✅ Avoid late penalties and interest charges – Online payments process faster than post-dated cheques, reducing the risk of deficient payments.
✅ Keep track of your payments – Instant payment confirmations help you maintain proper remittance advice.
✅ Save time – No more trips to the bank or worrying about lost cheques payable to the CRA.
✅ Secure and reliable – The CRA’s electronic filing options ensure safer transactions with applicable tax rate accuracy.
Ready to simplify your corporate tax filing deadline? Here’s how you can do it step by step.
Step 1: Determine How Much You Owe
Before making a payment, you need to confirm your taxable income and how much you owe in corporate income taxes. Here’s how:
🔹 Log into your CRA My Business Account – Check your corporate income tax account balance and tax instalments history.
🔹 Review your corporate income tax return and CRA notices. Your original notice of assessment or statement of account will show the amount due.
🔹 Take note of payment deadlines – Missing the payment day could result in costly penalties and interest charges.
Step 2: Choose Your Payment Method
The CRA offers multiple ways to make instalment payments online, so you can pick the one that best suits your business activity.
1. Online Banking (Most Convenient for Businesses)
If you already use business banking, this is the simplest option.
🔹 Log in to your Canadian bank or credit union business account.
🔹 Select “Pay Bills” or “Add a Payee.”
🔹 Search for "CRA (Revenue) – Corporation Tax Payments."
🔹 Enter your 15-digit Business Identifier Code (BIC).
🔹 Specify the fiscal period and amount you’re paying.
🔹 Confirm and complete the payment.
2. CRA My Payment (Direct Bank Debit)
Pay directly from your bank account without logging into your financial institution’s website.
🔹 Go to CRA My Payment on the CRA website.
🔹 Select "Corporation Tax."
🔹 Enter your Alberta Corporate Account Number and/or Business Identification Number.
🔹 Choose your bank and authorize the payment.
🔹 Note: Debit cards and credit cards cannot be used with this service.
3. Pre-Authorized Debit (PAD) (Best for Recurring Payments)
If you want to automate corporate tax installments, PAD is the way to go.
🔹 Log in to your CRA My Business Account.
🔹 Set up a Pre-Authorized Debit (PAD).
🔹 Schedule future payments based on your business's year-end.
🔹 Modify or cancel payments anytime before the withdrawal date.
🔹 Important: The earliest payment date must be at least five business days from the date the PAD agreement is created.
4. Credit Card, PayPal, or Interac e-Transfer
If you prefer flexibility, party service providers offer additional payment options, but they charge a small fee.
🔹 Use services like PaySimply or Plastiq to pay via Visa Debit, credit card, PayPal, or Interac e-Transfer.
🔹 Reminder: These are third-party services and not directly affiliated with the CRA.
🔹 Be aware that these services charge a processing fee.
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Step 3: Make the Payment
💡 Double-check your remittance details before submitting!
Ensure that:
✅ Your corporation type and business threshold are correct.
✅ The fiscal period aligns with your corporate income tax filing deadline.
✅ The amount matches what you owe in respect of corporations.
Once the payment is processed, save the original remittance advice for your records.
Step 4: Verify and Track Your Payment
Even though electronic funds transfers are fast, it’s always a good idea to confirm that the CRA has received your money.
🔹 Log into your CRA My Business Account to check the status of your payment.
🔹 Wait at least three business days before checking your payment status, as electronic payments can take up to three days to process.
🔹 If you don’t see the payment after the normal reassessment period, contact the CRA to avoid penalties.
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Upcoming Change: CRA Transitioning to Online Mail
Starting in Spring 2025, the CRA will transition to online mail as the default method for most business correspondence via My Business Account. This means businesses should regularly check their CRA account for helpful filing instructions and updates.
Final Tips to Avoid Penalties
🚀 Set calendar reminders for tax deadlines to ensure you never forget a payment.
📌 Always double-check the business locations and reporting period when making a payment—misapplied payments can be a headache to correct.
💡 If you can’t pay in full, don’t ignore it. Contact the CRA to set up a waiver request or a payment arrangement. You can learn more about CRA service delivery options here.
By following these steps, you can ensure that your corporate income tax return is filed on time, stress-free, and without unnecessary penalties.
