Electronic Tax Payments: What Businesses Need to Know
Large tax payments are increasingly moving away from traditional payment methods and toward electronic processing.
Businesses making significant payments to the Receiver General should understand the electronic payment requirements and make sure their payment processes are ready.
When is electronic payment required?
Since January 1, 2024, certain payments to the Receiver General over $10,000 must generally be made electronically, unless electronic payment cannot reasonably be made.
This can apply to common business tax obligations, including income tax and GST/HST payments.
Why businesses should prepare now
If your business regularly makes large tax payments, reviewing your payment process before a deadline can help avoid unnecessary complications.
Make sure the people responsible for tax payments know how payments will be submitted and have the appropriate banking or account access in place.
Review your payment process
Businesses should consider:
- Reviewing how tax payments are currently submitted.
- Confirming which payments are subject to electronic payment requirements.
- Making sure banking and accounting processes support electronic payments.
- Planning ahead so payment issues don’t result in missed tax deadlines.
A small process change now can help prevent a larger compliance issue later.
Davidson can help you understand your tax payment obligations and make sure your processes support accurate and timely remittances.
This article is provided for general information only and should not be considered accounting, legal, or tax advice. Your individual circumstances may differ. Contact your trusted advisor for guidance specific to your tax needs.
