Getting a call from the CRA demanding payment can be stressful, especially when you’re busy running your business. Staying calm and knowing how to respond makes all the difference. At True North Accounting, we help small business owners navigate these calls and secure repayment terms that work.
Here’s what we recommend when the CRA comes knocking:
It’s tempting to ignore the call and hope it goes away. But trust us, it won’t. Ignoring CRA calls only makes the problem bigger. They might just disallow certain valid deductions, and charge you interest and penalties.
If you’re unresponsive (and late to file), they may assess your tax returns, which means they will decide how much income you made and file your tax return for you, and then increase your amount owing.
They can also escalate collection actions, such as freezing your business accounts or garnishing payments.
If you miss their call, call them back as soon as you can - or better yet, ask your accountant to call them back for you! It shows you’re taking things seriously, and that can make a difference in how they work with you.
If you want to get ahead of things or have questions, the general CRA business line is 1-800-959-5525.
See more contact options
Remember, the person calling is an agent doing their job. Being polite and professional, even if you’re stressed, will keep the conversation productive. It can also make the CRA more willing to listen and offer flexible options.
If your business is having cash flow issues or you’re struggling to pay, be upfront about it. The CRA isn’t there to punish you — they want their money, but they also understand that sometimes businesses need time.
Being honest and clear about your financial situation helps them work with you on a realistic plan.
By default, the CRA often offers 6-month repayment plans. But if that won’t work for you, ask for a longer term. Just be ready to provide some basic financial details so they can see what you can afford.
You can set up or adjust payment arrangements online through your CRA My Business Account or by phone.
Learn how to set up payment arrangements
Once you and the CRA agree on a payment schedule, it’s critical to stick to it. Missing payments or paying less than agreed will automatically trigger your payment arrangement as “Not Met.”
This means you’re on a shorter leash, and you now have to negotiate a new payment schedule that will involve a shorter term and more aggressive collection steps — like garnishing your bank accounts.
If you can’t make a payment, communicate with the CRA in advance.
If your circumstances change and you can’t meet your payment terms, don’t wait until you’re behind. Call the CRA as soon as possible to explain and discuss alternative arrangements. Being proactive can prevent penalties and enforcement actions.
Even if you can’t pay the full amount owed, sending regular payments — even small ones — shows you’re committed to resolving your debt. This can help reduce the risk of the CRA taking tougher steps.
The CRA takes unpaid payroll remittances the most seriously — this is because these payments have been deducted from employees' wages. At that point, it’s the employees' money to send in, not the business’s. If you don’t pay it on time, the CRA sees it as theft.
Similarly, businesses are required to collect GST/HST on transactions, but it's never considered income to the business — the business collects it on behalf of the CRA and the cash is held “in trust” for the government until it's due to be paid.
Here’s the hierarchy for which taxes to pay off first:
Making payments on time is easier if you’re set up to pay online. You can:
If you feel overwhelmed or unsure how to proceed, don’t hesitate to reach out to a tax professional or Licensed Insolvency Trustee. They can help you understand your options, negotiate with the CRA and protect your business interests.
When the CRA calls, you’re not alone. With the right steps, you can manage the situation and keep your business on track. If you want expert help, reach out to us at True North Accounting. We’ll help you understand your options and find the best way forward.
Read more about Corporate Taxes topics that may be helpful to you and your small business.