Paying Tax Debt in Instalments

If you are unable to pay your tax debt immediately in a lump sum because of your financial situation, you must let us know as soon as possible.

If you meet the conditions, we may be able to reach a payment agreement with you to help you meet your tax obligations voluntarily. For more information, click Payment Agreements.

If you do not cooperate with us, we may use administrative and legal measures to settle your debt, in which case a collection fee may be added to the amount due.

Important

Interest, compounded daily at the rate set by law, will accrue on the amount until it is paid in full.

Cancellation of interest, penalties and charges 

In some very specific situations, you can apply to have us cancel interest, penalties or charges you were charged under tax legislation. If your application is granted, the cancellation will take effect once you have paid the remaining portion of your debt.

If you are not satisfied with a decision rendered further to an application for cancellation, you can ask for a review.

Important

Not all situations justify the cancellation of interest, penalties or charges. We will analyze your application to determine whether it meets the predetermined conditions.

For more information on the situations that may justify the cancellation of such amounts or instructions on filing an application, click Application for Cancellation of Interest, Penalties or Charges.

Bankruptcy and insolvability 

If you believe you are insolvent or are considering declaring bankruptcy, go to the Office of the Superintendent of Bankruptcy section of the Government of Canada website.

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