Paying business income taxes to the Canadian Revenue Agency (CRA) has been simplified by the emergence of e-services. The agency accepts online payments of taxes on their platform, My Pavement Service, which is accessible anywhere round the clock. Businesses in the country can make a business income tax payment to the CRA by simply visiting the platform.
Notably, there are other simple ways of paying business income tax to CRA apart from using My Payment Service. This article looks at some ways you can go about this tax accountant Toronto process hassle-free if you have a business in Toronto, Mississauga, and Oakville.
Paying Business Income Tax to CRA
1. Paying online
You can pay your business income tax by online or telephone banking. Visit your financial institution to set a date by which they can be sending payments to CRA on your behalf. Also, you can pay your business income tax to the CRA the same way you pay your monthly utility bills by phone. To go through the process:
- Visit your financial institution’s website and register for online services
- Sign in to the online banking service
- On the “Add a payee” section, choose an appropriate option for your business such as Federal – Corporation Tax Payments (TXINS)
- Insert your business number on the CRA account number section
- Submit the payment
Note that your financial service provider can charge you some fees for remitting the tax payment to the CRA on your behalf.
2. Use a Pre-Authorized Debit (PAD)
If you have a checking account with a financial institution, you can make use of a pre-authorized debit to automate your business tax payment to the CRA. This service enables you to permit the CRA to withdraw some money from your account to pay for the taxes regularly.
As an account holder, you must specify the date on which the CRA should make such deductions from your account. To activate your PAD service:
- Register your business on My Business Account
- Click on “CRA register.”
- Fill in the blanks on the next steps
- The CRA sends you an access code you can use to automate or cancel your regular business income tax payment.
3. Pay by mail or money order
To ensure this process is successful, you must have a valid remittance voucher that you can fill to specify your tax payment instructions to the CRA. Visit your financial institution and request a check or money order. Fill it and mail your order to the Receiver General by attaching it to a valid remittance voucher.
4. Pay via Canadian Financial Institution
You can visit a certified Canadian Financial Institution to make your business income tax payment. First, you have to get a valid remittance voucher or an original payment form. Note that the CRA doesn’t accept remittance vouchers photocopies.
If you intend to make tax payments for over USD 25 Million, you must make prior arrangements with your financial institution to initiate the process.
Paying your business income tax to the CRA should not be a tedious process if you can access the internet. If you have a business bank account with a recognized financial institution in the country, you can ask the bank to help you with the process. Ultimately, the tips given here should help you go through the procedure quickly.