Wants to pay tax monthly

Zoomer | January 1st, 2006


Q – 

I just did my 2002 income tax. I was on long-term disability last year and no income tax was taken off. I owe $3,300. Can I make monthly payments to the government? Or do I have to pay the whole $3,300 in one shot? – P.S.


A – If you can’t pay right away, contact your local Canada Customs and Revenue Office and discuss the matter with them. CCRA will normally work out an arrangement that allows you to pay over time. However, you will be charged interest on the unpaid balance until the total due is cleared. If you can pay the full amount immediately, you’ll avoid that.


Whatever you do, be sure to file your return on time. If you miss the April 30 deadline, a 5% penalty will be tacked on to the amount owing, as well as interest charges. – G.P.