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.

"You must gain control over your money or the lack of it will forever control you." — Dave Ramsey