Taxpayers who pay the CRA by cheque need to be aware of the new electronic payment requirements.
The Canada Revenue Agency (CRA) announced a policy shift that will impact how payments and remittances over $10,000 are made to the Receiver General of Canada. Effective January 1, 2024, such transactions are required to be processed electronically. This update is particularly relevant for business owners and high net worth individuals who frequently engage in large financial transactions.
Understanding the New Electronic Payment Requirement
The CRA's new policy mandates that any payment or remittance exceeding $10,000 to the Receiver General must be made electronically. While the option to pay by cheque will remain available, payers may face penalties if they choose to remit amounts over $10,000 through non-electronic means without a reasonable inability to pay electronically.
How to Make Electronic Payments
The CRA offers several secure options for making electronic payments:
The CRA's move to mandate electronic payments for amounts over $10,000 is another step in the path to digitization of CRA’s activities. Business owners and high net worth individuals should take proactive steps to adapt to this new requirement to ensure their financial operations remain seamless, keep aligned with the latest regulatory requirements, and to safeguard against potential disruptions and penalties. If you have any questions regarding how these changes may impact your business, or any other accounting, tax and 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.
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