Important update for Canadian businesses and individuals. If you make large payments to the CRA, whether as a business owner, self‑employed professional, or through your personal tax filings, this rule may affect you. Understanding what’s required and how to comply is the best way to avoid unnecessary penalties.
What changed and when
Effective January 1, 2024, any payment or remittance over $10,000 to the Receiver General must be made electronically—unless it is not reasonably possible. The Income Tax Act, s.160.5(2) sets the requirement and s.162(7.4) sets a $100 penalty per non‑compliant payment. Income Tax Act, s.160.5(2) Penalty—ITA s.162(7.4)
For GST/HST, the same rule appears in the Excise Tax Act, s.278(3) and defines what counts as an “electronic payment.” Excise Tax Act, s.278. CRA interpretation—Electronic filing and remitting (GST/HST Technical Info 7‑5).
Plain‑English takeaway: If one payment you send to CRA is over $10,000, plan to send it electronically (online banking, CRA’s debit options, or an approved service). Mailing a cheque over $10,000 can be penalized unless you truly can’t pay electronically.
Is CRA enforcing penalties right now?
Currently, CRA materials indicate an education‑first approach before applying the penalty. CRA program guides (for example, RC4022 and RC4058) say the agency will educate taxpayers before applying a penalty for the electronic‑payment requirement. This could change, so prepare now. RC4022—General Information for GST/HST Registrants. RC4058—Quick Method of Accounting for GST/HST.
What counts as an “electronic payment”?
CRA describes electronic payment as a payment made through or at a financial institution by electronic means, or by other electronic methods specified by the Minister(for example, CRA’s online debit or third‑party providers). Practical options that meet the rule include:
Option 1: Online banking bill payment
Set CRA as a payee in your online banking and send your payment from a Canadian bank or credit union. This is the most common way to pay electronically. CRA—Payment options (Individuals). CRA—Payment options (Businesses)
Option 2: CRA “My Payment” (online debit)
Pay directly from your bank account using CRA’s My Payment. It processes as an electronic debit, no cheque needed. CRA—My Payment (debit)
Option 3: Pre‑authorized debit (PAD) from CRA portals
Schedule payments from My Account or My Business Account and keep confirmations for your records. CRA—Pre‑authorized debit (PAD)
Option 4: CRA‑approved third‑party providers
You can pay by credit card, PayPal, Interac e‑Transfer, or at Canada Post with a QR code through approved third‑party services (fees apply). CRA—Using a third‑party service provider (see sections on Third‑party service providerand Canada Post retail location with a QR code).
Does teller‑assisted payment at a bank count?
CRA’s GST/HST technical guidance says a payment to the account of the Receiver General at or through a bank or credit union can qualify as an electronic payment when processed electronically. If you’re paying in person, confirm with your financial institution that the transaction will be sent electronically (not as a mailed cheque). CRA—Electronic filing and remitting (paras. 35–36)
Frequently asked questions
CRA describes electronic payment as a payment made through or at a financial institution by electronic means, or by other electronic methods specified by the Minister(for example, CRA’s online debit or third‑party providers). Practical options that meet the rule include:
Does this apply to both businesses and individuals?
Yes. The rule applies to any payment or remittance over $10,000 to the Receiver General (corporate tax, payroll source deductions, GST/HST, personal tax, etc.). ITA s.160.5(2)
What if I can’t pay electronically?
The law includes an exception “unless the payor or remitter cannot reasonably remit or pay the amount in that manner.”Document why it wasn’t reasonably possible (for example, system outages or lack of access) and keep proof. ITA s.160.5(2) ETA s.278(3)
What is the penalty for non‑compliance?
$100 per payment that should have been electronic but was not, under ITA s.162(7.4). Keep payment confirmations for your records. ITA s.162(7.4)—Penalty
Do I need a CRA portal account?
Not strictly, but My Account (individuals) or My Business Account(businesses) makes it easier to set up PAD, view balances, and download confirmations. CRA—Sign in to My Account CRA—Sign in to My Business Account
What to do now to stay compliant
- Set up online banking payees for all CRA accounts you use (T1, T2, GST/HST, payroll). Do a $1 test to verify the account mapping and processing time.
- Enable PAD in My Account / My Business Account for recurring obligations (installments, payroll, GST/HST).
- Document your process (who initiates, who approves, where confirmations are stored). Retain payment confirmations for audit support.
- Avoid mailing cheques for amounts over $10,000 unless you’ve documented why electronic payment was not reasonably possible.
- Review upcoming due dates and cash‑flow to avoid last‑minute, non‑electronic workarounds.
How Ralph & Levinson can help
We help owner‑managed corporations and professionals across BC and Alberta implement compliant, audit‑ready payment workflows:
- Map each tax type to the right electronic method and approval chain.
- Configure bank payees, PAD schedules, and portal access with proper internal controls.
- Review your evidence trail (confirmations, reconciliations) so you’re prepared if CRA asks.
- Train your team and provide a written procedures checklist you can reuse every period.
Call 250‑727‑6444, or use our Contact page, If you have any questions!
FAQs
Do Government of Canada cheques expire?
No. Federal cheques do not become stale‑dated, though your bank may verify older items or place a hold.
How long does a replacement take?
It varies. Consult CRA’s processing‑times tool and allow for identity/security checks when required.
Last updated
October. 03 / 2025
Disclaimer:
This guide provides general information and is not legal or tax advice. Laws and CRA administrative practices change. Consult a professional about your specific situation before acting.
