# Paying CRA through online banking



## petulantfem (Dec 13, 2010)

H just got a reassessment in the mail that he has to pay back some of his refund. Since he is generally not home during banking hours, I thought I could pay this online.

We bank with PC Financial and when I try to add a bill for CRA it gives me three options: 
CRA - ARREARS
CRA - PAYMENT ON FILING
CRA - 2011 INSTALLMENTS

I am thinking I would pay it on CRA Arrears? I could just mail a cheque, but I hate remembering that I have a cheque out and having to wait for it to clear - instant payments are so much easier for me.

Has anyone done this online with PC before? Or is that not possible?


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## the-royal-mail (Dec 11, 2009)

Who's H?


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## petulantfem (Dec 13, 2010)

Haha, sorry. H = "husband" ... bad habits are leaking over from other forums.


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## the-royal-mail (Dec 11, 2009)

Got it. Thanks.

I think cheques are far easier than what you are describing. Mailing a cheque is the best way and is always how I pay any income taxes owing. Then you can see when it was received/cashed via online banking, whereas what you are describing is akin to sending a debit payment...to someone. It'd be more hassle to then try and figure out if the right people got it, following up with them, fixing any problems etc.


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## carverman (Nov 8, 2010)

petulantfem said:


> We bank with PC Financial and when I try to add a bill for CRA it gives me three options:
> CRA - ARREARS
> CRA - PAYMENT ON FILING
> CRA - 2011 INSTALLMENTS
> ...


I bank online with PC Financial and pay my bills (the ones which are not
automatic debit deductions) through PC online (Pay Bills)

I've generally got a refund back and so far haven't had to pay anything.
but if I had to pay CRA, it would be under ARREARs.
The way I see it...if I get re-assessed during the taxation year for the 
previous years filing and it was my mistake (I do my own tax return),
it was my error and I can't really argue the point with them as I am
in arrears as far as tax owing.

CRA does an automatic deposit to my PC bank acct, so do the gov't pension
checks. I can trace these on my bank statement which I print myself.

My tax deductions are done automatically at source as I have 3 pension
payments per month. 
I wouldn't have any problems doing a tax payment online to CRA if I was
in arrears, because the bank records the date the payment cleared on my online statement.
I do not get back the cancelled checks from PC Financial..as a matter of fact..if you want a copy of the cancelled check there is a $10 charge now
so I keep a hard copy of the bank statement for each month in my files. 

If PC misdirects the payment to CRA under "arrears"..then it's a matter between PC Financial and CRA to straighten out, 
as I can photo copy proof of when that payment cleared from my account. 
and send it in to CRA if need be.


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## kcowan (Jul 1, 2010)

The only problem I ever encountered was when I paid (thru TD/CT) online to the arrears account and CRA credited it to their instalments account. Then they dinged me with penalty and interest. I filed an objection and CRA eventually sorted it out and gave me all the credits they owed.

BTW it is really easy to prove the transaction and all electronic, saving paper and stamps. I have been doing it for years with only the one foulup.

Of course, I file everything electronically from Mexico. It saves keeping paper files and then trying to find them.


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## Square Root (Jan 30, 2010)

kcowan said:


> The only problem I ever encountered was when I paid (thru TD/CT) online to the arrears account and CRA credited it to their instalments account. Then they dinged me with penalty and interest. I filed an objection and CRA eventually sorted it out and gave me all the credits they owed.
> 
> BTW it is really easy to prove the transaction and all electronic, saving paper and stamps. I have been doing it for years with only the one foulup.
> 
> Of course, I file everything electronically from Mexico. It saves keeping paper files and then trying to find them.


Agree. Done it the same way for years never a problem. I have had the same problem you mentioned when I used to pay by cheque though. Either way it's pretty easy to fix. Can check via "My Account" on CRA site. Cheques and stamps really a pain when you travel as much as we do. Actually, they are a pain even if you don't travel.


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## praire_guy (Sep 8, 2011)

I bank with pc and owed cra this year. I used cra payment on filing. 

You enter your sin for account number so there shouldn't be any problems.


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## carverman (Nov 8, 2010)

The other good thing about online payments to CRA is that you can do it on April 30th and make sure they receive the payment on filing online, that way they don't charge you interest on the amount owing from May 1st, especially if there is a Post office dispute somewhere again...
they won't accept the "cheque is in the mail" excuse anymore. 

I used to send my tax return in at least 2-3 weeks ahead of time with a 
postdated cheque for April 30th. You have to give them your SIN , 
to make sure the payment gets credited to your tax return, either with an online acct, or writing it on the back of your payment cheque.


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## Four Pillars (Apr 5, 2009)

I would just phone the CRA and ask them which account to use.


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## carverman (Nov 8, 2010)

Square Root said:


> Can check via "My Account" on CRA site.


I've registered just recently with CRA on "My Account" as I want to make
sure that my GST rebates are being processed and automatically deposited
in my bank account when they are supposed to. Just got a letter today
with instructions on how to activate "My Account" with CRA.

Isn't the information age wonderful? 
As long as you have a computer available, you can file your return, receive
a direct deposit refund or pay taxes owing without a licking a stamp or
making a trip to the mailbox.


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## kcowan (Jul 1, 2010)

I also don't print out our returns anymore. I keep the PDFs and archive them. This was the biggest savings of paper. For final returns of MIL and Bro, I had them ready in April but printed and mailed them in June. Hopefully those will be the last hard copies ever!


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## Square Root (Jan 30, 2010)

kcowan said:


> I also don't print out our returns anymore. I keep the PDFs and archive them. This was the biggest savings of paper. For final returns of MIL and Bro, I had them ready in April but printed and mailed them in June. Hopefully those will be the last hard copies ever!


Good point. You know when you think about it, things really have improved a lot over the past 20 years or so in many different ways. I think we too often forget this.


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## the-royal-mail (Dec 11, 2009)

Absolutely. Doing taxes electronically, whatever it's called these days, has always been my way of doing it. Put in the numbers and let the software do the calculation.

The one exception I make is that I like to deal with cheques for refunds and amounts owing. It sort of brings the virtual act into reality in my mind.


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## carverman (Nov 8, 2010)

Well, I'm still sending in the T1 Special form. Because I'm still paying
alimony in my retirement at $300 a month from my pension, the amount
is deducted automatically from my pension to the Ontario Family Responsibilty Office. It doesn't show up anywhere on my pension T5. 

I got audited by CRA a couple of years back/ They wanted to see proof of my payments to my ex, etc; so all I had to show them was the December pension statement to show that $3600 did not land in my pocket.

Now as of this September the Nortel Pension statements are no longer being
sent, so for 2011, I will also need to send in letter from the pension plan
administrator that this money was deducted from my pension.

I would like to go electronic filing, and just file a copy of my tax return, (and saved the t5s and charity receipts in my income tax file),..but I'm afraid that I might get audited again if I don't send CRA the actual paperwork.


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## fraser (May 15, 2010)

We have been paying on line-both for amount due on 30/4 and for our regular installments. We have never had an issue.


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## kcowan (Jul 1, 2010)

the-royal-mail said:


> The one exception I make is that I like to deal with cheques for refunds and amounts owing. It sort of brings the virtual act into reality in my mind.


They deposit the refund cheques but the reconciliation statement is sent in the mail (although it is available online).


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