Paying Taxes By Installments

The Canada Revenue Agency (CRA) may charge interest, as well as penalties, on overdue quarterly payments. The interest applied is compounded daily. A penalty also is charged if the installment interest reaches a certain level.

If you can't pay your installments on time, it might be advisable to borrow the funds. The loan rates available from most financial institutions are far more advantageous than the interest and penalties charged by CRA.

"Let no feeling of discouragement prey upon you, and in the end you are sure to succeed." — Abraham Lincoln