Taxpayers who send payments to the Canada Revenue Agency (CRA) via cheque should be informed about the recent changes in electronic payment procedures as the CRA has implemented a new policy affecting payments and remittances exceeding $10,000.
Effective January 1, 2024, payments and remittances to the Receiver General of Canada exceeding $10,000 must be processed electronically. This policy change applies to incorporated businesses, sole proprietors, and individuals. While the option to use cheques for payments remains, individuals who make payments exceeding $10,000 via non-electronic means may face penalties unless they can provide a valid reason for their inability to pay electronically.
The CRA offers several secure options for electronic payments:
- Online Banking: Payments can be made directly to the CRA through your bank’s online portal.
- CRA My Payment: This service allows for direct transfers from your bank account (using Interac Debit, Visa Debit or Debit Mastercard) to the CRA without additional charges.
- Participating Financial Institutions: Payments made at your financial institution, accompanied by the appropriate remittance voucher*, are considered electronic payments.
If you typically pay by cheque, we strongly advise taking a proactive approach to adopt one of the secure electronic payment methods mentioned above. Electronic payments not only ensure compliance with regulatory requirements but also guarantee that payments are processed on time**, thereby avoiding interest and penalties.
If you have any questions regarding how these changes may impact your business or any other accounting, tax, and business advisory matters, please don’t hesitate to contact your TG&C advisor.
*Your TG&C representative can assist with ordering the appropriate remittance vouchers; however, CRA’s processing time to mail out vouchers is 5-10 business days.
**Processing times: As a friendly reminder, processing times can vary based on financial institution. Please check with your financial institution for the cut-off time for same or next business day payments. We generally recommend all electronic payments be made at least one business day before the deadline.