Some taxpayers have unknowingly switched to electronic reminders instead of physical ones.

For many businesses, the transition to paperless communication with the Canada Revenue Agency (CRA) offers convenience but can also introduce some challenges. One recurring issue has been the switch from physical HST (Harmonized Sales Tax) instalment reminders to digital ones. Here is what you need to know and how you can ensure you stay informed and compliant.

Understanding the Issue

The CRA is advancing towards the digitization of its activities and encourages paperless transactions. Some taxpayers have unknowingly switched from physical communications (letters in the mail) to digital communications (email). This situation typically arises when an email address is provided on any corporate form or return, inadvertently switching the taxpayer’s preference from physical notifications to digital ones. As some taxpayers expect the physical reminder, they do not properly check their digital communications, resulting in missed payments and potential fines and penalties.

Key Points to Consider:

• Email Monitoring: If you’ve opted for email notifications, or are unsure, it’s crucial to monitor the specified email address regularly for communications from the CRA.
• Business Account Mailbox: Email notifications from the CRA direct you to the mailbox in your CRA My Business Account. It is essential to regularly check this account for any updates or reminders.

Staying Vigilant Against Scams

When switching to digital communications, be cautious of scam emails claiming to be from the CRA. These emails often request personal information or contain links with actionable items. Genuine CRA emails will never ask for personal information or include direct links for actions. Instead, they will direct you to log into your My Business Account to review any new mail or updates.

While the shift to electronic communication can simplify interactions with the CRA, it is crucial to stay informed and vigilant. Regularly checking your email and CRA My Business Account, managing instalments promptly, and being aware of potential scams will help ensure you remain compliant and avoid any unnecessary complications and penalties. If you have any questions regarding how these changes may impact your business or any other accounting, tax, or business advisory items, please contact your Bateman MacKay Business Advisor. Topical accounting, tax, and business advisory articles pertinent to business owners can be accessed by subscribing to our blog and following us on LinkedIn.

More HST Instalment Information

Managing HST Instalment Payments

To avoid unnecessary penalties and interest, ensure that your HST instalment payments are made promptly. Instalments are due within one month after the end of each fiscal quarter. Here’s how you can manage and view your instalment due dates:

• Instalment Payment Calculator: Use the CRA Instalment Payment Calculator available at My Business Account or Represent a Client to view due dates online.
• Weekend and Holiday Adjustments: If a due date falls on a weekend or a public holiday recognized by the CRA, payments received or postmarked on the next business day are considered on time.

Payment Methods

There are several ways to make your GST/HST instalment payments:

• Form RC160: Use Form RC160, Remittance Voucher – Interim Payments. Note that this form is only available in a personalized and printed format and must be ordered in advance.
• Electronic Payments: Utilize your financial institution’s online or telephone banking services, or use the CRA's My Payment service.
• Pre-Authorized Debit: Authorize the CRA to withdraw payments directly from your Canadian chequing account on specific dates via My Business Account.

Security Tips:

• Verify Emails: Always verify the legitimacy of emails purportedly from the CRA by checking for official notifications in your My Business Account.
• Report Scams: Report any suspicious emails to the CRA and do not click on any links or provide personal information.