CRA Personal Tax Instalment Letter

Canada Revenue Agency has sent instalment letters that seem to be more confusing than usual. The letter is offering you a “no calculation” option, which means that they want half of what you owed for 2018 paid by September 15th, 2019 and the other half paid on December 15th, 2019. 

If you read the letter, you will see that they have not taken into consideration the instalments that you already paid on March 15th, 2019 and June 15th, 2019. They also say on the letter, if you have made instalments, CRA has not taken that into consideration. So the “no calculation” option is only appropriate for you if you have made no payments at all yet on your 2019 income taxes. 

We are getting calls of alarm from our clients who want to know why CRA is asking them to pay twice as much as we recommended when we did their 2018 tax return. It’s all in the fine print.  It is important to read the letter carefully. CRA is asking for instalments as though no amounts have been paid yet. 

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