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Paying income taxes owing
April 20, 2022
6:03 pm
Bill
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Their site says "We will cancel any penalty or interest on an amount owed if the total amount of penalty and interest charged is $25 or less when the tax is paid in full" so I'm wondering if, based on the amount you owe, they've taken that into consideration and determined the date you cross that $25 threshold.

Otherwise their site says interest starts May 3 this year.

April 20, 2022
7:27 pm
COIN
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I know it seems weird but here is what it says:

"Amount due: $X
Pay by May 18, 2022"

April 21, 2022
5:45 am
BlueSky
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The different due dates people are getting could be related to the sizeable amount owed? can't be too sure. I always got a "grace period" before interest kicked in, don't recall having to pay by tax filing deadline date.

April 21, 2022
7:40 am
COIN
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I called the CRA this morning and spoke to a live human. He said to ignore the date on the NofA. The balance payable is due on May 2, 2022.

April 21, 2022
7:44 am
AltaRed
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BlueSky said
The different due dates people are getting could be related to the sizeable amount owed? can't be too sure. I always got a "grace period" before interest kicked in, don't recall having to pay by tax filing deadline date.  

I have never known of a grace period not specially announced broadly by CRA. The dates seem to be related to about 1 month after date of submission of Netfile and likely a programming error. Pay by May 2 to avoid interest charges.

April 21, 2022
8:06 am
COIN
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AltaRed said
The dates seem to be related to about 1 month after date of submission of Netfile and likely a programming error. Pay by May 2 to avoid interest charges.  

Yes, it now makes "sense". I filed on April 20th and May 18th is a month later. The CRA gentleman on the phone said the balance is still due on May 2nd or interest will be charged if paid later.

Darn, I initially thought I had an extra 16 days to pay the balance without being charged any interest.

April 21, 2022
8:17 am
Norman1
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The May 18 date, one month after filing, may not be for when the daily compounded interest starts.

May 18 could be when a collection process starts, if payment is not received by then! One month sounds like a reasonable deadline for responding to a CRA notice of assessment or reassessment for money.

April 21, 2022
9:20 am
Bill
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Took longer for me, I was reassessed Feb 28 saying interest would start March 15, I'm not paying and received my first Collections notice yesterday.

April 21, 2022
10:32 am
COIN
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Bill said
Took longer for me, I was reassessed Feb 28 saying interest would start March 15, I'm not paying and received my first Collections notice yesterday.  

Isn't the final tax payment not due until May 2, 2022? Why would the CRA want the funds by March 15th?

P.S. Be careful. A collection notice from the CRA might damage your credit rating.

April 21, 2022
1:50 pm
Bill
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It's a reassessment for 2020 tax year, issued after they ran their matching program for 2020 T slips in late 2021 or early 2022 so not issued until Feb of this year.

I've not needed credit since my 30's, credit rating not a concern. I will ultimately win my case with CRA so the reassessment will be reversed at some point.

April 22, 2022
8:48 am
BlueSky
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AltaRed said

I have never known of a grace period not specially announced broadly by CRA. The dates seem to be related to about 1 month after date of submission of Netfile and likely a programming error. Pay by May 2 to avoid interest charges.  

Norman1 said
The May 18 date, one month after filing, may not be for when the daily compounded interest starts.

May 18 could be when a collection process starts, if payment is not received by then! One month sounds like a reasonable deadline for responding to a CRA notice of assessment or reassessment for money.  

To be clear, Norman1's statement reflects what I meant by "grace period". I would netfile my tax return, wait for CRA's NOA and pay by the due date indicated on the NOA. I've never had any interest charged to me.

April 30, 2022
1:00 pm
pcs
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Re dates etc ...

I Netfile'd my return yesterday evening (Apr 29th) and within five minutes got email from CRA saying there was a message in my MyCRA inbox. Logged in to MyCRA and found the message was a notification that my "Express NOA" was available. Look at that and find that the Balance Due doesn't match what I expected ... whhaaatttt ?

Actually, the final Balance Due figure is +5% AER arrears interest.
The Express NoA is dated May 10th - but issued on April 29th. That's clever - the CRA system thinks it can foresee the future ??

I submitted my Balance Owing payment yesterday evening as well (the figure that I had calculated, not including the post-dated arrears interest) and I expect that by the time the "non-express" NoA is available ( coincidentally, stated on MyCRA to be due May 10th as well) my payment will have been recorded, there will not in fact be any arrears interest and my account balance will zero.

However, IMHO, there is something not quite kosher about the Express NoA as issued.

During the Netfile process I did tick the box saying I would make the electronic payment of balance owing within five business days. I'm guessing that info didn't get registered somewhy at their end - that's the only reason (other than a more fundamental programming error in CRA's system) I can think of for their system assuming on Apr 29th that my tax account would be in arrears on May 10th.

( The Express NoA also includes the text

To avoid additional interest charges please pay by May 30, 2022.

This ties in with earlier comments in this thread about an "additional interest" date being quoted approx one month after Netfile'ing - but I don't see that it's relevant to the May 10th apparent interest date. )

April 30, 2022
4:21 pm
COIN
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I don't want to mess with the CRA. I will be paying the balance due on May 2nd.

April 30, 2022
5:41 pm
Bill
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pcs, so the Express NOA calculated interest from May 3 to May 10, and indicated there would be more interest thereafter on any still outstanding balance, even though you indicated you'd pay within the next 5 business day (that would be by May 6). So I guess they just add a couple more business days to calculate the interest to - maybe they build in a few days safety so that they don't have to go after people again for a few days more interest after payment. But, yes, if you pay by May 2 you will owe no interest, their calculation to May 10 will be reversed, is what I'd assume too.

April 30, 2022
6:23 pm
mmlt
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I wait till they bill me.

April 30, 2022
6:48 pm
turquoise
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So I guess they just add a couple more business days to calculate the interest to - maybe they build in a few days safety so that they don't have to go after people again for a few days more interest after payment. But, yes, if you pay by May 2 you will owe no interest, their calculation to May 10 will be reversed, is what I'd assume too.

Yes, this was my experience. I had a balance due, and I paid the full amount that was noted on the express NOA. I filed and paid on April 28.

I didn't realize that this amount assumed that I would pay by May 10 -- and so there was 8 days' worth of interest.

I logged into my CRA account. They received the payment on April 29, and credited the arrears interest.

I'm not quite sure of the thinking here. I mean, it's not like there is a grace period (i.e. the CRA saying "OK, we see that you filed on April 28, so we're going to give you until May 10 to pay your balance and won't charge you interest if we get it by then."). Interest starts accruing on May 3. So why would the due date be listed as May 10 with 8 days of interest baked in? That's kind of weird. Any guesses as to why this is the case?

May 4, 2022
4:50 pm
COIN
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The CRA system works. I paid my balance owing on May 2nd. I logged into my CRA account to-day and noticed they backdated the payment to April 30th thus wiping out a ton of debit interest charged.

May 4, 2022
7:03 pm
pcs
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Yes, same thing for me : the payment made on Friday Apr 29th (after business hours) is recorded by CRA as credited to my tax account on Saturday 30th, and the final account balance is $0.00, as expected.
However, the account balance statement still gives both
- the Assessment date, with "Arrears interest charged", as May 10th
and
- the "Arrears interest reversed" date, also as May 10th
Which is really clever on a now-PDF'd page dated May 4th ...

I will of course check again next week to see that nothing changes after May 10th.

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